Competition Commission v Masana Petroleum Solutions (Pty) Ltd (06/CR/Mar10) [2010] ZACT 41; [2010] 1 CPLR 87 (CT) (23 June 2010)

Competition Commission v Masana Petroleum Solutions (Pty) Ltd (06/CR/Mar10) [2010] ZACT 41; [2010] 1 CPLR 87 (CT) (23 June 2010)

The Tribunal found that Masana Petroleum Solutions (Pty) Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in horizontal price fixing with other petroleum companies regarding bitumen and bituminous products. The settlement agreement, which included Masana's cooperation with the Commission and the implementation of compliance measures, was found to be appropriate. The administrative penalty of R13,000,000 was accepted as being within the statutory limit of 10% of annual turnover. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Masana relating to the investigated conduct.

Citation
[2010] ZACT 41
Parties
Applicant: Competition Commission; Respondent: Masana Petroleum Solutions (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
23 June 2010
Case Number
06/CR/Mar10
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Settlement Agreement, Corporate Leniency Policy
Competition Law Horizontal Price Fixing Administrative Penalty Settlement Agreement Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Masana Petroleum Solutions (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Masana Petroleum Solutions (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing with competitors.
  2. 2 Whether the settlement agreement between the Competition Commission and Masana should be confirmed as an order of the Tribunal.
  3. 3 Whether the agreed administrative penalty is appropriate and within statutory limits.

Ratio Decidendi

The Tribunal found that Masana Petroleum Solutions (Pty) Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in horizontal price fixing with other petroleum companies regarding bitumen and bituminous products. The settlement agreement, which included Masana's cooperation with the Commission and the implementation of compliance measures, was found to be appropriate. The administrative penalty of R13,000,000 was accepted as being within the statutory limit of 10% of annual turnover. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Masana relating to the investigated conduct.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Masana Petroleum Solutions (Pty) Ltd is confirmed as an order of the Tribunal.
  • Masana Petroleum Solutions (Pty) Ltd is to pay an administrative penalty of R13,000,000 to the Commission within six months from the date of confirmation.