Competition Commission v GD Irons Construction (Pty) Ltd (CR143Nov14/SA241Jan19) [2019] ZACT 8 (6 February 2019)

Competition Commission v GD Irons Construction (Pty) Ltd (CR143Nov14/SA241Jan19) [2019] ZACT 8 (6 February 2019)

The Tribunal found that GD Irons Construction (Pty) Ltd admitted to engaging in collusive tendering, price fixing, and market division in contravention of section 4(1)(b) of the Competition Act. The respondent cooperated with the Commission, ceased the prohibited conduct, and undertook to implement compliance measures. The administrative penalty of R4,000,000, less than 10% of annual turnover, was deemed appropriate. The Tribunal confirmed the settlement agreement as an order, concluding all proceedings between the parties regarding the investigated conduct.

Citation
[2019] ZACT 8
Parties
Applicant: Competition Commission; Respondent: GD Irons Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
6 February 2019
Case Number
CR143Nov14/SA241Jan19
Procedural Posture
Settlement Application / Consent Agreement Confirmation
Outcome
The settlement agreement between the Competition Commission and GD Irons Construction (Pty) Ltd is confirmed as an order of the Tribunal, concluding all proceedings related to the investigated conduct.
Judges
Y Carrim, M Mazwai, I Valodia
Legal Topics
Collusive Tendering, Price Fixing, Market Division, Administrative Penalty, Section 4 1 B Contravention
Competition Law Collusive Tendering Price Fixing Market Division Administrative Penalty Section 4 1 B Contravention

Case Brief

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Parties

Competition Commission

Applicant

GD Irons Construction (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Consent Agreement Confirmation

Legal Issues

  1. 1 Whether GD Irons Construction (Pty) Ltd contravened section 4(1)(b)(i)-(iii) of the Competition Act by engaging in collusive tendering, price fixing, and market division.
  2. 2 Whether the settlement agreement between the Competition Commission and GD Irons Construction (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal found that GD Irons Construction (Pty) Ltd admitted to engaging in collusive tendering, price fixing, and market division in contravention of section 4(1)(b) of the Competition Act. The respondent cooperated with the Commission, ceased the prohibited conduct, and undertook to implement compliance measures. The administrative penalty of R4,000,000, less than 10% of annual turnover, was deemed appropriate. The Tribunal confirmed the settlement agreement as an order, concluding all proceedings between the parties regarding the investigated conduct.

Court Disposition

The settlement agreement between the Competition Commission and GD Irons Construction (Pty) Ltd is confirmed as an order of the Tribunal, concluding all proceedings related to the investigated conduct.

Orders

  • The settlement agreement annexed as 'A' is confirmed as an order of the Tribunal.
  • GD Irons Construction (Pty) Ltd shall pay an administrative penalty of R4,000,000 to the Competition Commission in two instalments: R1,200,000 within 30 days and R2,800,000 on the anniversary of the confirmation date.