Competition Commission v Malesela Taihan Electric Cable (Pty) Ltd (CO085Jul15) [2015] ZACT 122; [2015] 2 CPLR 566 (CT) (2 September 2015)

Competition Commission v Malesela Taihan Electric Cable (Pty) Ltd (CO085Jul15) [2015] ZACT 122; [2015] 2 CPLR 566 (CT) (2 September 2015)

The Tribunal confirmed the consent agreement between the Competition Commission and Malesela Taihan Electric Cable (Pty) Ltd. The respondent admitted to contraventions of section 4(1)(b)(i) and (iii) of the Competition Act by engaging in price fixing, market division, and collusive tendering with competitors. The Tribunal found the administrative penalty of R20,200,000, representing 2.5% of M-Tec's 2010 turnover and not exceeding the statutory maximum, to be appropriate. The agreement included undertakings by M-Tec to cooperate with the Commission, desist from anti-competitive conduct, and implement a compliance programme. The Tribunal was satisfied that the consent agreement served the...

Citation
[2015] ZACT 122
Parties
Applicant: Competition Commission; Respondent: Malesela Taihan Electric Cable (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 September 2015
Case Number
CO085Jul15
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and M-Tec are concluded.
Judges
A Wessels, I Valodia, M Mokuena
Legal Topics
Collusive Tendering, Price Fixing, Market Division, Administrative Penalty, Competition Act Section 4
Competition Law Commercial and Corporate Collusive Tendering Price Fixing Market Division Administrative Penalty Competition Act Section 4

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Parties

Competition Commission

Applicant

Malesela Taihan Electric Cable (Pty) Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Malesela Taihan Electric Cable (Pty) Ltd contravened section 4(1)(b)(i), (ii), and (iii) of the Competition Act by engaging in price fixing, market division, and collusive tendering.
  2. 2 Whether the consent agreement 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 consent agreement between the Competition Commission and Malesela Taihan Electric Cable (Pty) Ltd. The respondent admitted to contraventions of section 4(1)(b)(i) and (iii) of the Competition Act by engaging in price fixing, market division, and collusive tendering with competitors. The Tribunal found the administrative penalty of R20,200,000, representing 2.5% of M-Tec's 2010 turnover and not exceeding the statutory maximum, to be appropriate. The agreement included undertakings by M-Tec to cooperate with the Commission, desist from anti-competitive conduct, and implement a compliance programme. The Tribunal was satisfied that the consent agreement served the...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and M-Tec are concluded.

Orders

  • The consent agreement between the Competition Commission and Malesela Taihan Electric Cable (Pty) Ltd is confirmed as an order of the Tribunal.
  • M-Tec is to pay an administrative penalty of R20,200,000 in three instalments over two years, as specified in the agreement.