Competition Commission v Mccoy’s Glass Wholesalers CC (016543) [2013] ZACT 51 (12 June 2013)

Competition Commission v Mccoy’s Glass Wholesalers CC (016543) [2013] ZACT 51 (12 June 2013)

The Tribunal found that McCoy’s Glass Wholesalers CC admitted to contravening sections 4(1)(b)(i) and (ii) of the Competition Act by participating in agreements to fix prices and divide markets for glass products. The respondent voluntarily withdrew from the cartel in April 2007 and cooperated fully with the Commission’s investigation. The parties agreed to a consent order, including an administrative penalty of R2,487,450.70, calculated as 3% of the respondent’s affected turnover for the financial year ending 30 June 2011. The Tribunal confirmed the consent agreement and its addendum, which amended the payment terms for the penalty, as an order. The order concludes all proceedings...

Citation
[2013] ZACT 51
Parties
Applicant: Competition Commission; Respondent: Mccoy’s Glass Wholesalers CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 June 2013
Case Number
016543
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and McCoy’s Glass Wholesalers CC are concluded.
Judges
N Manoim, T Madima, A Ndoni
Legal Topics
Price Fixing, Market Division, Administrative Penalty, Consent Order, Corporate Leniency Policy
Competition Law Price Fixing Market Division Administrative Penalty Consent Order Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Mccoy’s Glass Wholesalers CC

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did McCoy’s Glass Wholesalers CC contravene sections 4(1)(b)(i) and (ii) of the Competition Act by participating in price fixing and market division agreements?
  2. 2 Is the administrative penalty agreed upon appropriate and enforceable under the Competition Act?
  3. 3 Should the Tribunal confirm the consent agreement as an order?

Ratio Decidendi

The Tribunal found that McCoy’s Glass Wholesalers CC admitted to contravening sections 4(1)(b)(i) and (ii) of the Competition Act by participating in agreements to fix prices and divide markets for glass products. The respondent voluntarily withdrew from the cartel in April 2007 and cooperated fully with the Commission’s investigation. The parties agreed to a consent order, including an administrative penalty of R2,487,450.70, calculated as 3% of the respondent’s affected turnover for the financial year ending 30 June 2011. The Tribunal confirmed the consent agreement and its addendum, which amended the payment terms for the penalty, as an order. The order concludes all proceedings...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and McCoy’s Glass Wholesalers CC are concluded.

Orders

  • The consent agreement between the Competition Commission and McCoy’s Glass Wholesalers CC is confirmed as an order of the Tribunal.
  • McCoy’s Glass Wholesalers CC shall pay an administrative penalty of R2,487,450.70 within six months of confirmation, with 50% payable within three months and the balance within six months.