Competition Commission v Fireco (Pty) Ltd (CR245Mar171SA237Jan19) [2019] ZACT 34 (6 February 2019)

Competition Commission v Fireco (Pty) Ltd (CR245Mar171SA237Jan19) [2019] ZACT 34 (6 February 2019)

The Tribunal confirmed the consent agreement between the Competition Commission and Fireco (Pty) Ltd as an order. Fireco admitted to contravening section 4(1)(b)(ii) of the Competition Act by dividing markets with Fireco Gauteng, allocating customers and territories, and presenting themselves as branches of one another. The agreement sets out undertakings for future compliance, including the implementation of a competition law compliance programme and refraining from further contraventions. Fireco is required to pay an administrative penalty of R2,200,913.85, representing 3% of its affected turnover for the financial year ended February 2015, payable in eight equal quarterly instalments...

Citation
[2019] ZACT 34
Parties
Applicant: Competition Commission; Respondent: Fireco (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 February 2019
Case Number
CR245Mar171SA237Jan19
Procedural Posture
Settlement Application / Consent Agreement Confirmation
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; future compliance undertakings accepted.
Judges
N Manoim, M Mazwai, I Valodia
Legal Topics
Market Division, Administrative Penalty, Consent Agreement, Section 4 Prohibited Practices
Competition Law Market Division Administrative Penalty Consent Agreement Section 4 Prohibited Practices

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Parties

Competition Commission

Applicant

Fireco (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Consent Agreement Confirmation

Legal Issues

  1. 1 Whether Fireco (Pty) Ltd contravened section 4(1)(b)(ii) of the Competition Act by dividing markets with Fireco Gauteng.
  2. 2 Whether the settlement agreement between the Competition Commission and Fireco (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contravention.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Fireco (Pty) Ltd as an order. Fireco admitted to contravening section 4(1)(b)(ii) of the Competition Act by dividing markets with Fireco Gauteng, allocating customers and territories, and presenting themselves as branches of one another. The agreement sets out undertakings for future compliance, including the implementation of a competition law compliance programme and refraining from further contraventions. Fireco is required to pay an administrative penalty of R2,200,913.85, representing 3% of its affected turnover for the financial year ended February 2015, payable in eight equal quarterly instalments...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; future compliance undertakings accepted.

Orders

  • The settlement agreement between the Competition Commission and Fireco (Pty) Ltd is confirmed as an order of the Tribunal.
  • Fireco (Pty) Ltd must pay an administrative penalty of R2,200,913.85 in eight equal quarterly instalments over 24 months.