Competition Commission v NWK Ltd (43/CR/Jun11) [2011] ZACT 93; [2012] 1 CPLR 98 (CT) (9 November 2011)

Competition Commission v NWK Ltd (43/CR/Jun11) [2011] ZACT 93; [2012] 1 CPLR 98 (CT) (9 November 2011)

The Tribunal found that NWK Ltd, as a member of the Grain Silo Industry, participated in conduct that amounted to prohibited price fixing of daily grain storage tariffs, in contravention of section 4(1)(b)(i) of the Competition Act. NWK admitted its participation and agreed to pay an administrative penalty constituting 4% of its 2009 grain silo storage turnover. The Tribunal confirmed the consent agreement as an order, which included NWK's undertakings to cooperate with the Commission, refrain from future contraventions, and implement a competition law compliance programme. The order concludes all proceedings between the Commission and NWK relating to the alleged contravention under case...

Citation
[2011] ZACT 93
Parties
Applicant: Competition Commission; Respondent: NWK Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order Application / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and NWK Ltd concluded.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Order, Grain Storage Tariffs, Industry Association Conduct
Competition Law Horizontal Price Fixing Administrative Penalty Consent Order Grain Storage Tariffs Industry Association Conduct

Case Brief

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Parties

Competition Commission

Applicant

NWK Ltd

Respondent

Procedural Posture

Consent Order Application / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether NWK Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether the conduct warrants the imposition of an administrative penalty under the Competition Act.
  3. 3 Whether the consent agreement should be confirmed as an order of the Tribunal.

Ratio Decidendi

The Tribunal found that NWK Ltd, as a member of the Grain Silo Industry, participated in conduct that amounted to prohibited price fixing of daily grain storage tariffs, in contravention of section 4(1)(b)(i) of the Competition Act. NWK admitted its participation and agreed to pay an administrative penalty constituting 4% of its 2009 grain silo storage turnover. The Tribunal confirmed the consent agreement as an order, which included NWK's undertakings to cooperate with the Commission, refrain from future contraventions, and implement a competition law compliance programme. The order concludes all proceedings between the Commission and NWK relating to the alleged contravention under case...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and NWK Ltd concluded.

Orders

  • The consent agreement between the Competition Commission and NWK Ltd is confirmed as an order of the Tribunal.
  • NWK Ltd shall pay an administrative penalty of R3,295,158.08 to the Commission within 10 days of confirmation of the order.