Competition Commission v Harding Allison Close Corporation (018846) [2014] ZACT 90; [2014] 1 CPLR 6 (CT) (18 June 2014)

Competition Commission v Harding Allison Close Corporation (018846) [2014] ZACT 90; [2014] 1 CPLR 6 (CT) (18 June 2014)

The Tribunal found that Harding Allison Close Corporation admitted to engaging in collusive tendering with Group Five by agreeing on a cover price for the Renault Motor Company, Meridian Drive, Umhlanga project. This conduct constituted a contravention of section 4(1)(b)(iii) of the Competition Act. The respondent cooperated fully with the Commission, ceased the prohibited conduct, and undertook to implement a compliance programme. The parties agreed to an administrative penalty of R78,821.94, representing 2% of Harding Allison's annual turnover for 2009. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby...

Citation
[2014] ZACT 90
Parties
Applicant: Competition Commission; Respondent: Harding Allison Close Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 June 2014
Case Number
018846
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the parties regarding the specified conduct concluded.
Judges
A Roskam, I Valodia, F Tregenna
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

Case Brief

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Parties

Competition Commission

Applicant

Harding Allison Close Corporation

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Harding Allison Close Corporation contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering.
  2. 2 Whether the consent agreement between the Competition Commission and Harding Allison should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate and in accordance with the Act.

Ratio Decidendi

The Tribunal found that Harding Allison Close Corporation admitted to engaging in collusive tendering with Group Five by agreeing on a cover price for the Renault Motor Company, Meridian Drive, Umhlanga project. This conduct constituted a contravention of section 4(1)(b)(iii) of the Competition Act. The respondent cooperated fully with the Commission, ceased the prohibited conduct, and undertook to implement a compliance programme. The parties agreed to an administrative penalty of R78,821.94, representing 2% of Harding Allison's annual turnover for 2009. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the parties regarding the specified conduct concluded.

Orders

  • The consent agreement between the Competition Commission and Harding Allison Close Corporation is confirmed as an order of the Tribunal.
  • Harding Allison Close Corporation shall pay an administrative penalty of R78,821.94 to the Competition Commission within 30 days of confirmation of the order.