Competition Commission v MVA Bricks (Pty) Ltd (2009May4419) [2013] ZACT 17; [2013] 1 CPLR 98 (CT) (20 March 2013)

Competition Commission v MVA Bricks (Pty) Ltd (2009May4419) [2013] ZACT 17; [2013] 1 CPLR 98 (CT) (20 March 2013)

The Tribunal confirmed the settlement agreement between the Competition Commission and MVA Bricks (Pty) Ltd as an order. MVA Bricks admitted to participating in a cartel involving price fixing of generic paving blocks, in contravention of section 4(1)(b)(i) of the Competition Act. The settlement agreement included an administrative penalty of R672,565.47, undertakings to refrain from future prohibited conduct, implementation of a compliance programme, and cooperation with the Commission in prosecuting other respondents. The Tribunal found the penalty and undertakings appropriate and in accordance with the Act, and confirmed the agreement as a full and final settlement of proceedings...

Citation
[2013] ZACT 17
Parties
Applicant: Competition Commission; Respondent: MVA Bricks (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
20 March 2013
Case Number
2009May4419
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and MVA Bricks (Pty) Ltd concluded.
Judges
T Madima, A Ndoni, A Roskam
Legal Topics
Price Fixing, Administrative Penalty, Corporate Leniency Policy, Settlement Agreement
Competition Law Price Fixing Administrative Penalty Corporate Leniency Policy Settlement Agreement

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Parties

Competition Commission

Applicant

MVA Bricks (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether MVA Bricks (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing of generic paving blocks.
  2. 2 Whether the settlement agreement between the Competition Commission and MVA Bricks (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and MVA Bricks (Pty) Ltd as an order. MVA Bricks admitted to participating in a cartel involving price fixing of generic paving blocks, in contravention of section 4(1)(b)(i) of the Competition Act. The settlement agreement included an administrative penalty of R672,565.47, undertakings to refrain from future prohibited conduct, implementation of a compliance programme, and cooperation with the Commission in prosecuting other respondents. The Tribunal found the penalty and undertakings appropriate and in accordance with the Act, and confirmed the agreement as a full and final settlement of proceedings...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and MVA Bricks (Pty) Ltd concluded.

Orders

  • The settlement agreement between the Competition Commission and MVA Bricks (Pty) Ltd is confirmed as an order of the Tribunal.
  • MVA Bricks (Pty) Ltd is to pay an administrative penalty of R672,565.47 within seven months of the order.