Competition Commission v Pangbourne Properties Limited and Others (16246) [2013] ZACT 15; [2013] 1 CPLR 103 (CT) (13 March 2013)

Competition Commission v Pangbourne Properties Limited and Others (16246) [2013] ZACT 15; [2013] 1 CPLR 103 (CT) (13 March 2013)

The Tribunal confirmed the consent agreement between the Competition Commission and the respondents. The Tribunal accepted that the two property transactions should have been notified as a single intermediate merger and that the respondents contravened section 13A(3) by implementing the transactions prior to notification. The respondents agreed to pay an administrative penalty of R75,000 jointly and severally and to implement a compliance programme within twelve months. The Tribunal found that the settlement was appropriate and concluded all proceedings related to the contravention.

Citation
[2013] ZACT 15
Parties
Applicant: Competition Commission of South Africa; Respondent: Pangbourne Properties Limited; Respondent: Morulat Properties Investments 2 (Pty) Ltd; Respondent: Proud Heritage Properties 283 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 March 2013
Case Number
016246
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance programme required.
Judges
A Wessels, M Mazwai, M Mokuena
Legal Topics
Merger Notification, Prior Implementation, Administrative Penalty, Section 13a Breach
Competition Law Merger Notification Prior Implementation Administrative Penalty Section 13a Breach

Case Brief

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Parties

Competition Commission of South Africa

Applicant

Pangbourne Properties Limited

Respondent

Morulat Properties Investments 2 (Pty) Ltd

Respondent

Proud Heritage Properties 283 (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether the two property transactions should have been notified as a single intermediate merger under the Competition Act.
  2. 2 Whether the respondents contravened section 13A(3) of the Competition Act by implementing the transactions prior to notification.
  3. 3 Whether an administrative penalty is appropriate for the contravention.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and the respondents. The Tribunal accepted that the two property transactions should have been notified as a single intermediate merger and that the respondents contravened section 13A(3) by implementing the transactions prior to notification. The respondents agreed to pay an administrative penalty of R75,000 jointly and severally and to implement a compliance programme within twelve months. The Tribunal found that the settlement was appropriate and concluded all proceedings related to the contravention.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance programme required.

Orders

  • The consent agreement dated 12 February 2013 is confirmed as an order of the Tribunal.
  • The respondents are jointly and severally liable to pay an administrative penalty of R75,000 within seven days of confirmation of this order.