Competition Commission v NWK Ltd (44/CR/Jun11) [2011] ZACT 50; [2011] 2 CPLR 275 (CT) (14 July 2011)

Competition Commission v NWK Ltd (44/CR/Jun11) [2011] ZACT 50; [2011] 2 CPLR 275 (CT) (14 July 2011)

The Tribunal found that NWK Limited admitted to conduct that could be interpreted as market allocation in contravention of section 4(1)(b)(ii) of the Competition Act. The consent agreement, reached between the Commission and NWK, included the payment of an administrative penalty amounting to R520,290, representing 3% of the value of grain affected by the prohibited clause. NWK undertook to cooperate with the Commission in any further proceedings, refrain from future contraventions, and implement a competition law compliance programme. The Tribunal confirmed the consent agreement as an order, thereby resolving all proceedings between the Commission and NWK relating to the alleged...

Citation
[2011] ZACT 50
Parties
Applicant: Competition Commission; Respondent: NWK Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 July 2011
Case Number
44/CR/Jun11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; future compliance and cooperation undertakings accepted.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Market Allocation, Horizontal Agreement, Administrative Penalty, Future Conduct Undertaking, Competition Compliance Programme
Competition Law Market Allocation Horizontal Agreement Administrative Penalty Future Conduct Undertaking Competition Compliance Programme

Case Brief

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Parties

Competition Commission

Applicant

NWK Limited

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether NWK Limited and Rand Merchant Bank entered into an agreement constituting market allocation in contravention of section 4(1)(b)(ii) of the Competition Act.
  2. 2 Whether the conduct admitted by NWK Limited warrants the imposition of an administrative penalty under the Competition Act.
  3. 3 Whether the consent agreement adequately addresses future compliance and cooperation obligations.

Ratio Decidendi

The Tribunal found that NWK Limited admitted to conduct that could be interpreted as market allocation in contravention of section 4(1)(b)(ii) of the Competition Act. The consent agreement, reached between the Commission and NWK, included the payment of an administrative penalty amounting to R520,290, representing 3% of the value of grain affected by the prohibited clause. NWK undertook to cooperate with the Commission in any further proceedings, refrain from future contraventions, and implement a competition law compliance programme. The Tribunal confirmed the consent agreement as an order, thereby resolving all proceedings between the Commission and NWK relating to the alleged...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; future compliance and cooperation undertakings accepted.

Orders

  • The consent agreement between the Competition Commission and NWK Limited is confirmed as an order of the Tribunal.
  • NWK Limited shall pay an administrative penalty of R520,290 to the Competition Commission upon confirmation of the consent agreement.