Competition Commission v Old Mutual Life Assurance Company (SA) Ltd (016808) [2013] ZACT 49 (12 June 2013)

Competition Commission v Old Mutual Life Assurance Company (SA) Ltd (016808) [2013] ZACT 49 (12 June 2013)

The Tribunal found that the Section 37(2) Transfer resulted in Old Mutual Life Assurance Company (SA) Ltd acquiring control over part of Momentum Group Ltd's business, specifically the Transfer Assets and Transfer Policies. This transaction met the thresholds for a large merger and was therefore notifiable under the Competition Act. The respondents implemented the merger prior to notification and approval, contravening section 13A(3). The respondents admitted liability and agreed to pay an administrative penalty of R175,000 each, which is less than 10% of their annual turnover. The respondents also undertook to implement a compliance programme and not to implement any future notifiable...

Citation
[2013] ZACT 49
Parties
Applicant: Competition Commission; Respondent: Old Mutual Life Assurance Company (SA) Ltd; Respondent: Momentum Group Ltd (as it was then)
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 June 2013
Case Number
016808
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings concluded.
Judges
N Manoim, T Madima, A Ndoni
Legal Topics
Failure to Notify Merger, Administrative Penalty, Section 13a Violation, Consent Order, Large Merger Thresholds
Competition Law Commercial and Corporate Failure to Notify Merger Administrative Penalty Section 13a Violation Consent Order Large Merger Thresholds

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Parties

Competition Commission

Applicant

Old Mutual Life Assurance Company (SA) Ltd

Respondent

Momentum Group Ltd (as it was then)

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Did the Section 37(2) Transfer constitute a notifiable large merger under the Competition Act?
  2. 2 Was the merger implemented prior to notification and approval as required by section 13A of the Act?
  3. 3 Are the respondents liable for an administrative penalty for contravention of section 13A(3) of the Act?

Ratio Decidendi

The Tribunal found that the Section 37(2) Transfer resulted in Old Mutual Life Assurance Company (SA) Ltd acquiring control over part of Momentum Group Ltd's business, specifically the Transfer Assets and Transfer Policies. This transaction met the thresholds for a large merger and was therefore notifiable under the Competition Act. The respondents implemented the merger prior to notification and approval, contravening section 13A(3). The respondents admitted liability and agreed to pay an administrative penalty of R175,000 each, which is less than 10% of their annual turnover. The respondents also undertook to implement a compliance programme and not to implement any future notifiable...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings concluded.

Orders

  • The consent agreement between the Competition Commission and the respondents is confirmed as an order of the Tribunal.
  • Each respondent shall pay an administrative penalty of R175,000 to the Competition Commission within seven days of confirmation of the order.