Competition Commission v Kuehne and Nagel (Pty) Ltd (110/CR/Dec11) [2012] ZACT 13; [2012] 1 CPLR 88 (CT) (22 February 2012)

Competition Commission v Kuehne and Nagel (Pty) Ltd (110/CR/Dec11) [2012] ZACT 13; [2012] 1 CPLR 88 (CT) (22 February 2012)

The Tribunal found that Kuehne + Nagel (Pty) Ltd admitted to participating in agreements with competitors to fix surcharges and fees in the freight forwarding sector, constituting a contravention of section 4(1)(b)(i) of the Competition Act. The respondent agreed to pay an administrative penalty of R962,657.01, representing 5% of its relevant 2007 turnover, and undertook to cooperate with the Commission in further investigations and prosecutions. The respondent also committed to implementing a compliance programme and refraining from future contraventions. The Tribunal was satisfied that the consent agreement, including the penalty and undertakings, was appropriate and confirmed it as an...

Citation
[2012] ZACT 13
Parties
Applicant: Competition Commission; Respondent: Kuehne + Nagel (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 February 2012
Case Number
110/CR/Dec11
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 concluded.
Judges
A Wessels, A Ndoni, M Mokuena
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Future Conduct Undertaking
Competition Law Horizontal Price Fixing Administrative Penalty Consent Agreement Future Conduct Undertaking

Case Brief

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Parties

Competition Commission

Applicant

Kuehne + Nagel (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Kuehne + Nagel (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by participating in agreements to fix surcharges and fees in the freight forwarding sector.
  2. 2 Whether the consent agreement and administrative penalty proposed are appropriate under the Competition Act.
  3. 3 Whether the undertakings regarding future conduct and compliance are sufficient to address the contravention.

Ratio Decidendi

The Tribunal found that Kuehne + Nagel (Pty) Ltd admitted to participating in agreements with competitors to fix surcharges and fees in the freight forwarding sector, constituting a contravention of section 4(1)(b)(i) of the Competition Act. The respondent agreed to pay an administrative penalty of R962,657.01, representing 5% of its relevant 2007 turnover, and undertook to cooperate with the Commission in further investigations and prosecutions. The respondent also committed to implementing a compliance programme and refraining from future contraventions. The Tribunal was satisfied that the consent agreement, including the penalty and undertakings, was appropriate and confirmed it as an...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the parties concluded.

Orders

  • The consent agreement between the Competition Commission and Kuehne + Nagel (Pty) Ltd is confirmed as an order of the Tribunal.
  • Kuehne + Nagel (Pty) Ltd shall pay an administrative penalty of R962,657.01 to the Competition Commission within seven days of confirmation of this order.