Competition Commission v Egoli Gas (Pty) Ltd (2009Jan4212) [2013] ZACT 20; [2013] 1 CPLR 73 (CT) (28 March 2013)

Competition Commission v Egoli Gas (Pty) Ltd (2009Jan4212) [2013] ZACT 20; [2013] 1 CPLR 73 (CT) (28 March 2013)

The Tribunal confirmed that the suite of agreements between Egoli Gas and Sasol Gas contained customer and territorial restraints amounting to market allocation, which is a prohibited practice under section 4(1)(b)(ii) of the Competition Act. The regulatory framework, including the Gas Licence By-Laws, did not authorise such market allocation or prevent competition between gas reticulators and distributors. Egoli Gas admitted the contravention and agreed to cancel the offending agreements, refrain from future market allocation, implement a compliance programme, and pay an administrative penalty. The Tribunal confirmed the consent agreement as an order, including the undertakings and...

Citation
[2013] ZACT 20
Parties
Applicant: Competition Commission; Respondent: Egoli Gas (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
28 March 2013
Case Number
2009Jan4212
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Egoli Gas admitted contravention, agreed to compliance undertakings, and is liable for an administrative penalty.
Judges
N Manoim, M Mokuena, M Holden
Legal Topics
Market Allocation, Prohibited Practices, Administrative Penalty, Consent Agreement, Gas Distribution, Compliance Programme
Competition Law Commercial and Corporate Market Allocation Prohibited Practices Administrative Penalty Consent Agreement Gas Distribution Compliance Programme

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Parties

Competition Commission

Applicant

Egoli Gas (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether the suite of agreements between Egoli Gas and Sasol Gas constituted market allocation in contravention of section 4(1)(b)(ii) of the Competition Act.
  2. 2 Whether the regulatory framework permitted or prohibited such customer and territorial restraints.
  3. 3 Whether Egoli Gas is liable for an administrative penalty for the contravention.

Ratio Decidendi

The Tribunal confirmed that the suite of agreements between Egoli Gas and Sasol Gas contained customer and territorial restraints amounting to market allocation, which is a prohibited practice under section 4(1)(b)(ii) of the Competition Act. The regulatory framework, including the Gas Licence By-Laws, did not authorise such market allocation or prevent competition between gas reticulators and distributors. Egoli Gas admitted the contravention and agreed to cancel the offending agreements, refrain from future market allocation, implement a compliance programme, and pay an administrative penalty. The Tribunal confirmed the consent agreement as an order, including the undertakings and...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Egoli Gas admitted contravention, agreed to compliance undertakings, and is liable for an administrative penalty.

Orders

  • The consent agreement between the Competition Commission and Egoli Gas (Pty) Ltd is confirmed as an order of the Tribunal.
  • Egoli Gas shall pay an administrative penalty of R1,627,910.76 to the Commission within thirty days of confirmation of the order.