Competition Commission v Foodcorp (Pty) Ltd (50/CR/May08) [2009] ZACT 14; [2009] 1 CPLR 82 (CT) (6 January 2009)

Competition Commission v Foodcorp (Pty) Ltd (50/CR/May08) [2009] ZACT 14; [2009] 1 CPLR 82 (CT) (6 January 2009)

The Tribunal confirmed the settlement agreement between the Competition Commission and Foodcorp (Pty) Ltd as an order. Foodcorp admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price-fixing and market allocation with competitors, including Sunbake Bakeries and others, in various regions of South Africa. The agreement included Foodcorp's undertaking to cooperate with the Commission in future prosecutions, to circulate a summary of the settlement to senior employees, and to implement a compliance programme. The Tribunal approved the administrative penalty of R45,406,359.82, representing 6.7% of Foodcorp's baking operations turnover for 2006, payable in three...

Citation
[2009] ZACT 14
Parties
Applicant: Competition Commission; Respondent: Foodcorp (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 January 2009
Case Number
50/CR/May08
Procedural Posture
Consent Order Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed on Foodcorp.
Judges
D Lewis, N Manoim, U Bhoola
Legal Topics
Price Fixing, Market Allocation, Administrative Penalty, Corporate Leniency Policy, Settlement Agreement
Competition Law Price Fixing Market Allocation Administrative Penalty Corporate Leniency Policy Settlement Agreement

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Parties

Competition Commission

Applicant

Foodcorp (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Foodcorp contravened section 4(1)(b)(i) of the Competition Act by engaging in price-fixing and market allocation with competitors.
  2. 2 Whether the settlement agreement between the Commission and Foodcorp should be confirmed as an order of the Tribunal.
  3. 3 The quantum and payment terms of the administrative penalty imposed on Foodcorp.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Foodcorp (Pty) Ltd as an order. Foodcorp admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price-fixing and market allocation with competitors, including Sunbake Bakeries and others, in various regions of South Africa. The agreement included Foodcorp's undertaking to cooperate with the Commission in future prosecutions, to circulate a summary of the settlement to senior employees, and to implement a compliance programme. The Tribunal approved the administrative penalty of R45,406,359.82, representing 6.7% of Foodcorp's baking operations turnover for 2006, payable in three...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed on Foodcorp.

Orders

  • The settlement agreement between the Competition Commission and Foodcorp (Pty) Ltd is confirmed as an order of the Tribunal.
  • Foodcorp (Pty) Ltd shall pay an administrative penalty of R45,406,359.82 in three equal annual instalments.