Competition Commission v Paramount Mills (Pty) Ltd (CR087Mar10/SA253Feb19) [2019] ZACT 19 (13 March 2019)

Competition Commission v Paramount Mills (Pty) Ltd (CR087Mar10/SA253Feb19) [2019] ZACT 19 (13 March 2019)

Paramount Mills (Pty) Ltd admitted to participating in price fixing arrangements with other maize millers between 1999 and 2006, in contravention of section 4(1)(b)(i) of the Competition Act. The Tribunal found that the settlement agreement, which included admissions of liability, undertakings for future compliance, and payment of an administrative penalty, was consistent with the requirements of the Act. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Paramount Mills (Pty) Ltd in respect of the conduct described in the complaint.

Citation
[2019] ZACT 19
Parties
Applicant: Competition Commission; Respondent: Paramount Mills (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
13 March 2019
Case Number
CR087Mar10/SA253Feb19
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed and undertakings for future compliance accepted.
Judges
Y Carrim, A Ndoni, I Valodia
Legal Topics
Price Fixing, Administrative Penalty, Settlement Agreement, Section 4 1 B I, Corporate Leniency Policy
Competition Law Price Fixing Administrative Penalty Settlement Agreement Section 4 1 B I Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Paramount Mills (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Did Paramount Mills (Pty) Ltd contravene section 4(1)(b)(i) of the Competition Act by engaging in price fixing of milled white maize products?
  2. 2 Is the settlement agreement between the Competition Commission and Paramount Mills (Pty) Ltd compliant with the requirements of the Competition Act?
  3. 3 Is Paramount Mills (Pty) Ltd liable for an administrative penalty under section 59 of the Competition Act?

Ratio Decidendi

Paramount Mills (Pty) Ltd admitted to participating in price fixing arrangements with other maize millers between 1999 and 2006, in contravention of section 4(1)(b)(i) of the Competition Act. The Tribunal found that the settlement agreement, which included admissions of liability, undertakings for future compliance, and payment of an administrative penalty, was consistent with the requirements of the Act. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings between the Commission and Paramount Mills (Pty) Ltd in respect of the conduct described in the complaint.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed and undertakings for future compliance accepted.

Orders

  • The settlement agreement between the Competition Commission and Paramount Mills (Pty) Ltd is confirmed as an order of the Tribunal.
  • Paramount Mills (Pty) Ltd shall pay an administrative penalty in the total amount of R1,320,819.00, with half payable within 10 days and the balance in 12 equal instalments.