Competition Commission v Pelchem Soc Limited (CO150Oct16) [2016] ZACT 108; [2016] 2 CPLR 659 (CT) (7 December 2016)

Competition Commission v Pelchem Soc Limited (CO150Oct16) [2016] ZACT 108; [2016] 2 CPLR 659 (CT) (7 December 2016)

The Tribunal confirmed the consent agreement between the Competition Commission and Pelchem SOC Limited. The Tribunal found that the undertakings by Pelchem to remove exclusivity and evergreen clauses from its agreements, and its commitment not to enter into future exclusive supply arrangements for surface fluorination services, were sufficient to address the alleged contraventions of sections 5(1) and 8(c) of the Competition Act. The Tribunal accepted that Pelchem had cooperated fully with the Commission and had ceased the alleged conduct. The confirmation of the consent agreement settles the complaint and concludes the investigation into Pelchem's conduct in the relevant market.

Citation
[2016] ZACT 108
Parties
Applicant: Competition Commission; Respondent: Pelchem SOC Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 December 2016
Case Number
CO150Oct16
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed; complaint settled and investigation concluded.
Judges
M Mazwai, A Ndoni, I Valodia
Legal Topics
Exclusive Supply Agreement, Abuse of Dominance, Settlement Agreement, Section 5 1, Section 8 C
Competition Law Commercial and Corporate Exclusive Supply Agreement Abuse of Dominance Settlement Agreement Section 5 1 Section 8 C

Case Brief

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Parties

Competition Commission

Applicant

Pelchem SOC Limited

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Pelchem SOC Limited's exclusive supply agreements contravened sections 5(1) and 8(c) of the Competition Act.
  2. 2 Whether the consent agreement adequately addresses the alleged anti-competitive conduct.
  3. 3 Whether Pelchem's undertakings are sufficient to restore competition in the relevant market.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Pelchem SOC Limited. The Tribunal found that the undertakings by Pelchem to remove exclusivity and evergreen clauses from its agreements, and its commitment not to enter into future exclusive supply arrangements for surface fluorination services, were sufficient to address the alleged contraventions of sections 5(1) and 8(c) of the Competition Act. The Tribunal accepted that Pelchem had cooperated fully with the Commission and had ceased the alleged conduct. The confirmation of the consent agreement settles the complaint and concludes the investigation into Pelchem's conduct in the relevant market.

Court Disposition

Consent agreement confirmed; complaint settled and investigation concluded.

Orders

  • The consent agreement between the Competition Commission and Pelchem SOC Limited is confirmed as an order of the Tribunal.
  • Pelchem SOC Limited must remove all exclusivity and evergreen duration clauses from its existing Joint Development Agreements involving surface fluorination services.