Competition Commission v Kalundu Trading (Pty) Ltd (CO080Aug20) [2020] ZACT 58 (14 August 2020)

Competition Commission v Kalundu Trading (Pty) Ltd (CO080Aug20) [2020] ZACT 58 (14 August 2020)

The Tribunal found that Kalundu Trading (Pty) Ltd admitted to contravening section 4(1)(b)(ii) of the Competition Act by entering into an agreement with POS Services Holland (South Africa) (Pty) Ltd to allocate customers in the market for starter motors and alternators. The conduct constituted division of markets, which is strictly prohibited under the Act. The Tribunal confirmed the consent agreement, which included an administrative penalty of R458,979.52, undertakings for future compliance, and the implementation of a competition law compliance programme. The penalty did not exceed the statutory maximum, and the agreement resolved all proceedings between the Commission and Kalundu. The...

Citation
[2020] ZACT 58
Parties
Applicant: Competition Commission; Respondent: Kalundu Trading (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 August 2020
Case Number
CO080Aug20
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Future compliance undertakings accepted.
Judges
Y Carrim, F Tregenna, A Ndoni
Legal Topics
Division of Markets, Customer Allocation, Administrative Penalty, Consent Agreement, Future Conduct Undertakings
Competition Law Division of Markets Customer Allocation Administrative Penalty Consent Agreement Future Conduct Undertakings

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Parties

Competition Commission

Applicant

Kalundu Trading (Pty) Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Did Kalundu Trading (Pty) Ltd contravene section 4(1)(b)(ii) of the Competition Act by dividing markets through customer allocation with POS Services Holland (South Africa) (Pty) Ltd?
  2. 2 Is the proposed consent agreement appropriate for confirmation as an order of the Tribunal?
  3. 3 Is the administrative penalty proportionate and compliant with the Act?

Ratio Decidendi

The Tribunal found that Kalundu Trading (Pty) Ltd admitted to contravening section 4(1)(b)(ii) of the Competition Act by entering into an agreement with POS Services Holland (South Africa) (Pty) Ltd to allocate customers in the market for starter motors and alternators. The conduct constituted division of markets, which is strictly prohibited under the Act. The Tribunal confirmed the consent agreement, which included an administrative penalty of R458,979.52, undertakings for future compliance, and the implementation of a competition law compliance programme. The penalty did not exceed the statutory maximum, and the agreement resolved all proceedings between the Commission and Kalundu. The...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Future compliance undertakings accepted.

Orders

  • The consent agreement between the Competition Commission and Kalundu Trading (Pty) Ltd is confirmed as an order of the Tribunal.
  • Kalundu Trading (Pty) Ltd must pay an administrative penalty of R458,979.52 in 36 monthly instalments as specified in the agreement.