Competition Commission v More Asphalt (Pty) Ltd (CR187Nov151SA052Jun19) [2019] ZACT 33 (10 July 2019)

Competition Commission v More Asphalt (Pty) Ltd (CR187Nov151SA052Jun19) [2019] ZACT 33 (10 July 2019)

The Tribunal found that More Asphalt (Pty) Ltd admitted to participating in a market division arrangement with Much Asphalt (Pty) Ltd, which included quarterly meetings and a compensation scheme for exceeding allocated market shares. This conduct constituted a contravention of section 4(1)(b)(ii) of the Competition Act. The parties entered into a consent agreement in which More Asphalt undertook to cease the prohibited conduct, implement a compliance programme, and pay an administrative penalty. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby concluding all proceedings between the parties in respect of...

Citation
[2019] ZACT 33
Parties
Applicant: Competition Commission; Respondent: More Asphalt (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
10 July 2019
Case Number
CR187Nov151SA052Jun19
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and More Asphalt (Pty) Ltd in respect of the investigated conduct are concluded.
Judges
N Manoim, I Valodia, Y Carrim
Legal Topics
Market Division, Administrative Penalty, Cartel Conduct, Corporate Leniency Policy
Competition Law Market Division Administrative Penalty Cartel Conduct Corporate Leniency Policy

Case Brief

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Parties

Competition Commission

Applicant

More Asphalt (Pty) Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether More Asphalt (Pty) Ltd contravened section 4(1)(b)(ii) of the Competition Act by dividing markets with Much Asphalt (Pty) Ltd.
  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 found that More Asphalt (Pty) Ltd admitted to participating in a market division arrangement with Much Asphalt (Pty) Ltd, which included quarterly meetings and a compensation scheme for exceeding allocated market shares. This conduct constituted a contravention of section 4(1)(b)(ii) of the Competition Act. The parties entered into a consent agreement in which More Asphalt undertook to cease the prohibited conduct, implement a compliance programme, and pay an administrative penalty. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby concluding all proceedings between the parties in respect of...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and More Asphalt (Pty) Ltd in respect of the investigated conduct are concluded.

Orders

  • The consent agreement between the Competition Commission and More Asphalt (Pty) Ltd is confirmed as an order of the Tribunal.
  • More Asphalt (Pty) Ltd shall pay an administrative penalty of R579,204.57 in two instalments as specified in the agreement.