Competition Commission v Fio-tek Pipes and Irrigation (Pty) Ltd (15/CR/Feb09) [2010] ZACT 72 (27 October 2010)

Competition Commission v Fio-tek Pipes and Irrigation (Pty) Ltd (15/CR/Feb09) [2010] ZACT 72 (27 October 2010)

The Tribunal found that Fio-tek Pipes and Irrigation (Pty) Ltd admitted to participating in collusive conduct prohibited by section 4(1)(b) of the Competition Act, specifically price fixing, bid rigging, and market allocation in the PVC pipes market. The settlement agreement was reached following Fio-tek's admission and commitment to cooperate with the Commission in prosecuting other respondents and to implement a compliance programme. The Tribunal was satisfied that the administrative penalty of R5,049,433.26, representing 6% of Fio-tek's 2007 turnover, was appropriate and in line with the Act. The Tribunal confirmed the settlement agreement as an order, thereby concluding all...

Citation
[2010] ZACT 72
Parties
Applicant: Competition Commission; Respondent: Fio-tek Pipes and Irrigation (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
27 October 2010
Case Number
15/CR/Feb09
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
Y Carrim, A Wesseis, M Mokuena
Legal Topics
Collusive Tendering, Price Fixing, Market Allocation, Administrative Penalty, Corporate Leniency Policy
Competition Law Commercial and Corporate Collusive Tendering Price Fixing Market Allocation Administrative Penalty Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Fio-tek Pipes and Irrigation (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Fio-tek Pipes and Irrigation (Pty) Ltd contravened section 4(1)(b) of the Competition Act by engaging in collusive conduct.
  2. 2 Whether the settlement agreement between the Competition Commission and Fio-tek Pipes and Irrigation (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the agreed administrative penalty is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal found that Fio-tek Pipes and Irrigation (Pty) Ltd admitted to participating in collusive conduct prohibited by section 4(1)(b) of the Competition Act, specifically price fixing, bid rigging, and market allocation in the PVC pipes market. The settlement agreement was reached following Fio-tek's admission and commitment to cooperate with the Commission in prosecuting other respondents and to implement a compliance programme. The Tribunal was satisfied that the administrative penalty of R5,049,433.26, representing 6% of Fio-tek's 2007 turnover, was appropriate and in line with the Act. The Tribunal confirmed the settlement agreement as an order, thereby concluding all...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Fio-tek Pipes and Irrigation (Pty) Ltd is confirmed as an order of the Tribunal.
  • Fio-tek Pipes and Irrigation (Pty) Ltd shall pay an administrative penalty of R5,049,433.26 to the Competition Commission in two equal instalments.