Competition Commission v Hosanna Medical & Disposables CC (016717) [2013] ZACT 44 (5 June 2013)

Competition Commission v Hosanna Medical & Disposables CC (016717) [2013] ZACT 44 (5 June 2013)

The Tribunal confirmed the settlement agreement between the Competition Commission and Hosanna Medical & Disposables CC as an order. The respondent admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Shekinah Medical & Disposables CC in relation to a government tender for HIV test kits. The Tribunal found that the administrative penalty of R37,597.00, representing 5% of Hosanna's annual turnover for the relevant financial year, was appropriate and in accordance with the Act. The Tribunal accepted the undertakings by Hosanna to cooperate with the Commission, refrain from future cartel conduct, and implement compliance training. The order...

Citation
[2013] ZACT 44
Parties
Applicant: The Competition Commission; Respondent: Hosanna Medical & Disposables CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 June 2013
Case Number
016717
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Hosanna concluded.
Judges
N Manoim, M Mazwai, A Ndoni
Legal Topics
Cartel Conduct, Administrative Penalty, Section 4 1 B Iii, Settlement Agreement, Future Conduct Undertaking
Competition Law Cartel Conduct Administrative Penalty Section 4 1 B Iii Settlement Agreement Future Conduct Undertaking

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Parties

The Competition Commission

Applicant

Hosanna Medical & Disposables CC

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Hosanna Medical & Disposables CC contravened section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Shekinah Medical & Disposables CC.
  2. 2 Whether the settlement agreement between the Commission and Hosanna should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate under the Act.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Hosanna Medical & Disposables CC as an order. The respondent admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Shekinah Medical & Disposables CC in relation to a government tender for HIV test kits. The Tribunal found that the administrative penalty of R37,597.00, representing 5% of Hosanna's annual turnover for the relevant financial year, was appropriate and in accordance with the Act. The Tribunal accepted the undertakings by Hosanna to cooperate with the Commission, refrain from future cartel conduct, and implement compliance training. The order...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Hosanna concluded.

Orders

  • The settlement agreement between the Competition Commission and Hosanna Medical & Disposables CC is confirmed as an order of the Tribunal.
  • Hosanna Medical & Disposables CC must pay an administrative penalty of R37,597.00 within three months of confirmation of the order.