Competition Commission v Oceana Group Ltd and Another (50/CR/May12) [2012] ZACT 40; [2012] 2 CPLR 237 (CT) (19 June 2012)

Competition Commission v Oceana Group Ltd and Another (50/CR/May12) [2012] ZACT 40; [2012] 2 CPLR 237 (CT) (19 June 2012)

The Tribunal confirmed the consent agreement between the Competition Commission and Oceana Brands and Oceana Group, finding that the respondents admitted to contraventions of section 4(1)(b) of the Competition Act, including price fixing, market allocation, and non-compete agreements. The administrative penalty of R34,750,050, representing 5% of Oceana Brands' affected turnover for 2010, was deemed appropriate and proportionate to the contraventions. The Tribunal accepted Oceana's undertakings to cooperate with the Commission, cease the prohibited conduct, and implement a compliance programme. The order constitutes full and final settlement of all proceedings investigated under the...

Citation
[2012] ZACT 40
Parties
Applicant: Competition Commission; Respondent: Oceana Group Ltd; Respondent: Oceana Brands Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
19 June 2012
Case Number
50/CR/May12
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Undertakings for future compliance accepted.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Price Fixing, Market Allocation, Administrative Penalty, Non Compete Agreement, Horizontal Agreements, Compliance Programme
Competition Law Price Fixing Market Allocation Administrative Penalty Non Compete Agreement Horizontal Agreements Compliance Programme

Case Brief

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Parties

Competition Commission

Applicant

Oceana Group Ltd

Respondent

Oceana Brands Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Oceana Brands and Oceana Group contravened section 4(1)(b) of the Competition Act by engaging in price fixing, market allocation, and non-compete agreements.
  2. 2 Whether the administrative penalty imposed is appropriate under the Competition Act.
  3. 3 Whether the consent agreement and undertakings by Oceana are sufficient to prevent future contraventions.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Oceana Brands and Oceana Group, finding that the respondents admitted to contraventions of section 4(1)(b) of the Competition Act, including price fixing, market allocation, and non-compete agreements. The administrative penalty of R34,750,050, representing 5% of Oceana Brands' affected turnover for 2010, was deemed appropriate and proportionate to the contraventions. The Tribunal accepted Oceana's undertakings to cooperate with the Commission, cease the prohibited conduct, and implement a compliance programme. The order constitutes full and final settlement of all proceedings investigated under the...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Undertakings for future compliance accepted.

Orders

  • Oceana Brands to pay an administrative penalty of R34,750,050 to the Competition Commission within three months of the order.
  • Oceana to cooperate fully with the Commission in relation to the prosecution of the complaint upon referral, including providing evidence and witnesses.