Competition Commission v Engen Petroleum Ltd (06/CR/Mar 10) [2012] ZACT 14; [2012] 1 CPLR 69 (CT) (22 February 2012)

Competition Commission v Engen Petroleum Ltd (06/CR/Mar 10) [2012] ZACT 14; [2012] 1 CPLR 69 (CT) (22 February 2012)

The Tribunal found that Engen Petroleum Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price fixing with competitors in the bitumen market. The settlement agreement, which included an administrative penalty of R28,800,000 and undertakings by Engen to desist from the conduct and implement compliance measures, was found to be appropriate and within the statutory limits. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Engen relating to the alleged contraventions under the referred complaint.

Citation
[2012] ZACT 14
Parties
Applicant: Competition Commission; Respondent: Engen Petroleum Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 February 2012
Case Number
06/CR/Mar10
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Engen concluded.
Judges
A Wessels, M Mokuena, M Holden
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Settlement Agreement, Section 4 1 B I Contravention
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Settlement Agreement Section 4 1 B I Contravention

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Parties

Competition Commission

Applicant

Engen Petroleum Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Did Engen Petroleum Ltd contravene section 4(1)(b)(i) of the Competition Act by engaging in price fixing with competitors in the bitumen market?
  2. 2 Is the agreed administrative penalty appropriate and within statutory limits?
  3. 3 Should the settlement agreement between the Commission and Engen be confirmed as an order of the Tribunal?

Ratio Decidendi

The Tribunal found that Engen Petroleum Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price fixing with competitors in the bitumen market. The settlement agreement, which included an administrative penalty of R28,800,000 and undertakings by Engen to desist from the conduct and implement compliance measures, was found to be appropriate and within the statutory limits. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Engen relating to the alleged contraventions under the referred complaint.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Engen concluded.

Orders

  • The settlement agreement between the Competition Commission and Engen Petroleum Ltd is confirmed as an order of the Tribunal.
  • Engen Petroleum Ltd must pay an administrative penalty of R28,800,000 to the Competition Commission within 30 business days of confirmation.