Competition Commission v MAHLE GmbH and Another (CO104Aug20) [2020] ZACT 59 (14 September 2020)

Competition Commission v MAHLE GmbH and Another (CO104Aug20) [2020] ZACT 59 (14 September 2020)

The Tribunal confirmed the consent agreement between the Competition Commission and MAHLE Behr, finding that MAHLE Behr had contravened section 4(1)(b) of the Competition Act by engaging in collusive conduct with Denso in respect of tenders for HVAC units supplied to OEMs outside South Africa. The Tribunal accepted the administrative penalty of R1,622,106 and the undertakings by MAHLE Behr to implement a compliance programme, refrain from future contraventions, and publish a statement regarding the settlement. The order concludes all pending investigations and proceedings between the Commission and the MAHLE Group under the specified case numbers.

Citation
[2020] ZACT 59
Parties
Applicant: Competition Commission; Respondent: MAHLE GmbH; Respondent: MAHLE Behr GmbH & Co. KG
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 September 2020
Case Number
CO104Aug20
Procedural Posture
Consent Order / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; settlement concludes all pending proceedings between the Commission and the MAHLE Group.
Judges
M Mazwai, E Daniels, I Valodia
Legal Topics
Cartel Conduct, Administrative Penalty, Section 4 1 B Contravention, Consent Agreement, Compliance Programme
Competition Law Cartel Conduct Administrative Penalty Section 4 1 B Contravention Consent Agreement Compliance Programme

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Parties

Competition Commission

Applicant

MAHLE GmbH

Respondent

MAHLE Behr GmbH & Co. KG

Respondent

Procedural Posture

Consent Order / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether MAHLE Behr engaged in cartel conduct in contravention of section 4(1)(b) of the Competition Act.
  2. 2 Whether the consent agreement and administrative penalty are appropriate under the Act.
  3. 3 Whether the settlement concludes all pending proceedings between the Commission and the MAHLE Group.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and MAHLE Behr, finding that MAHLE Behr had contravened section 4(1)(b) of the Competition Act by engaging in collusive conduct with Denso in respect of tenders for HVAC units supplied to OEMs outside South Africa. The Tribunal accepted the administrative penalty of R1,622,106 and the undertakings by MAHLE Behr to implement a compliance programme, refrain from future contraventions, and publish a statement regarding the settlement. The order concludes all pending investigations and proceedings between the Commission and the MAHLE Group under the specified case numbers.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; settlement concludes all pending proceedings between the Commission and the MAHLE Group.

Orders

  • The consent agreement is confirmed as an order of the Tribunal.
  • MAHLE Behr shall pay an administrative penalty of R1,622,106 to the Competition Commission within 30 days.