Competition Commission v OVK Operations Ltd (43/CR/Jun11) [2011] ZACT 92; [2012] 1 CPLR 104 (CT) (9 November 2011)

Competition Commission v OVK Operations Ltd (43/CR/Jun11) [2011] ZACT 92; [2012] 1 CPLR 104 (CT) (9 November 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and OVK Operations Ltd. OVK admitted to participating in prohibited price fixing of daily grain storage tariffs as a member of the Grain Silo Industry, in contravention of section 4(1)(b)(i) of the Competition Act. The parties agreed to an administrative penalty of R375,615, representing 4% of OVK's 2009 grain silo storage turnover, and to the implementation of a competition law compliance programme. OVK undertook to cooperate with the Commission in future proceedings and to refrain from further contraventions. The Tribunal found the terms of the consent agreement to be appropriate and confirmed it as an order.

Citation
[2011] ZACT 92
Parties
Applicant: Competition Commission; Respondent: OVK Operations Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Compliance programme required.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Grain Storage Tariffs
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Consent Agreement Grain Storage Tariffs

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 1 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Competition Commission

Applicant

OVK Operations Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Did OVK Operations Ltd, as a member of the Grain Silo Industry, participate in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act?
  2. 2 Is the agreed administrative penalty and compliance programme appropriate under the Competition Act for the admitted contravention?

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and OVK Operations Ltd. OVK admitted to participating in prohibited price fixing of daily grain storage tariffs as a member of the Grain Silo Industry, in contravention of section 4(1)(b)(i) of the Competition Act. The parties agreed to an administrative penalty of R375,615, representing 4% of OVK's 2009 grain silo storage turnover, and to the implementation of a competition law compliance programme. OVK undertook to cooperate with the Commission in future proceedings and to refrain from further contraventions. The Tribunal found the terms of the consent agreement to be appropriate and confirmed it as an order.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Compliance programme required.

Orders

  • The consent agreement between the Competition Commission and OVK Operations Ltd is confirmed as an order of the Tribunal.
  • OVK Operations Ltd must pay an administrative penalty of R375,615 to the Competition Commission within two months of confirmation.