Competition Commission v Kagiso Media Investments (Pty) Ltd (CO008Apr21) [2021] ZACT 92 (5 May 2021)

Competition Commission v Kagiso Media Investments (Pty) Ltd (CO008Apr21) [2021] ZACT 92 (5 May 2021)

The Tribunal found that Kagiso Media Investments (Pty) Ltd and Mediamark (Pty) Ltd contravened section 13A(3) of the Competition Act by implementing the 2011 transaction prior to approval by the Commission. The respondents admitted liability and agreed to pay an administrative penalty. The Tribunal confirmed the consent agreement, which included undertakings by the respondents to notify future notifiable mergers and to implement a competition law compliance programme. The penalty amount was determined in accordance with the Act and is to be paid within 30 days of confirmation. The order resolves all proceedings relating to the contravention investigated under CC case number 2019Aug0028.

Citation
[2021] ZACT 92
Parties
Applicant: Competition Commission; Respondent: Kagiso Media Investments (Pty) Ltd; Respondent: Mediamark (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
5 May 2021
Case Number
CO008Apr21
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
Y Carrim, AW Wessels, F Tregenna
Legal Topics
Prior Implementation of Merger, Administrative Penalty, Merger Notification, Consent Agreement
Competition Law Commercial and Corporate Prior Implementation of Merger Administrative Penalty Merger Notification Consent Agreement

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Parties

Competition Commission

Applicant

Kagiso Media Investments (Pty) Ltd

Respondent

Mediamark (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did the respondents contravene section 13A(3) of the Competition Act by implementing the 2011 transaction prior to approval?
  2. 2 Is Mediamark liable for an administrative penalty for prior implementation of a notifiable merger?
  3. 3 Are the undertakings and compliance measures proposed by the respondents sufficient to resolve the contravention?

Ratio Decidendi

The Tribunal found that Kagiso Media Investments (Pty) Ltd and Mediamark (Pty) Ltd contravened section 13A(3) of the Competition Act by implementing the 2011 transaction prior to approval by the Commission. The respondents admitted liability and agreed to pay an administrative penalty. The Tribunal confirmed the consent agreement, which included undertakings by the respondents to notify future notifiable mergers and to implement a competition law compliance programme. The penalty amount was determined in accordance with the Act and is to be paid within 30 days of confirmation. The order resolves all proceedings relating to the contravention investigated under CC case number 2019Aug0028.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.

Orders

  • The consent agreement between the Competition Commission, Kagiso Media Investments (Pty) Ltd, and Mediamark (Pty) Ltd is confirmed as an order of the Tribunal.
  • Mediamark (Pty) Ltd must pay an administrative penalty of R1,699,500 within 30 days of confirmation of this order.