Competition Commission v Panasonic Corporation (CO103Aug20) [2020] ZACT 63 (16 September 2020)

Competition Commission v Panasonic Corporation (CO103Aug20) [2020] ZACT 63 (16 September 2020)

The Tribunal confirmed the consent agreement between the Competition Commission and Panasonic Corporation. The Commission's investigation revealed that Panasonic and Denso engaged in cartel conduct, including price fixing, market division, and collusive tendering in the supply of automotive components to OEMs, both within and outside South Africa. Although Panasonic did not admit liability, the Tribunal accepted the consent agreement due to the limited impact of the conduct in South Africa. The agreement includes an administrative penalty of R537,980, compliance undertakings, and concludes all proceedings between the Commission and Panasonic regarding the investigated conduct.

Citation
[2020] ZACT 63
Parties
Applicant: Competition Commission; Respondent: Panasonic Corporation
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 September 2020
Case Number
CO103Aug20
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted; proceedings concluded.
Judges
M Mazwai, E Daniels, I Valodia
Legal Topics
Cartel Conduct, Price Fixing, Market Division, Collusive Tendering, Administrative Penalty, Consent Agreement
Competition Law Commercial and Corporate Cartel Conduct Price Fixing Market Division Collusive Tendering Administrative Penalty Consent Agreement

Case Brief

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Parties

Competition Commission

Applicant

Panasonic Corporation

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Panasonic Corporation and Denso engaged in cartel conduct in contravention of section 4(1)(b) of the Competition Act.
  2. 2 Whether the consent agreement should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate under the Act.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Panasonic Corporation. The Commission's investigation revealed that Panasonic and Denso engaged in cartel conduct, including price fixing, market division, and collusive tendering in the supply of automotive components to OEMs, both within and outside South Africa. Although Panasonic did not admit liability, the Tribunal accepted the consent agreement due to the limited impact of the conduct in South Africa. The agreement includes an administrative penalty of R537,980, compliance undertakings, and concludes all proceedings between the Commission and Panasonic regarding the investigated conduct.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted; proceedings concluded.

Orders

  • The consent agreement between the Competition Commission and Panasonic Corporation is confirmed as an order of the Tribunal.
  • Panasonic Corporation shall pay an administrative penalty of R537,980 to the Commission within sixty (60) days of confirmation of the order.