Competition Commission v Power Metals Recyclers (Pty) Ltd (37/CR/Apr08) [2010] ZACT 46; [2010] 2 CPLR 269 (CT) (14 July 2010)

Competition Commission v Power Metals Recyclers (Pty) Ltd (37/CR/Apr08) [2010] ZACT 46; [2010] 2 CPLR 269 (CT) (14 July 2010)

The Tribunal confirmed the consent agreement between the Competition Commission and Power Metals Recyclers (Pty) Ltd as an order. Power Metals admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price fixing and collusive tendering with competitors in the non-ferrous scrap metal market. The Tribunal accepted the administrative penalty of R12,773,587.55, representing 5% of Power Metals' annual turnover for the year ended February 2006, as appropriate and in accordance with the Act. The Tribunal further noted the respondent's undertakings to cease the prohibited conduct, implement a compliance programme, and cooperate with ongoing investigations. The order...

Citation
[2010] ZACT 46
Parties
Applicant: Competition Commission; Respondent: Power Metals Recyclers (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 July 2010
Case Number
37/CR/Apr08
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Power Metals concluded.
Judges
N Manoim, A Wessels, M Madlanga
Legal Topics
Price Fixing, Collusive Tendering, Administrative Penalty, Consent Order, Section 4 Violation
Competition Law Price Fixing Collusive Tendering Administrative Penalty Consent Order Section 4 Violation

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Parties

Competition Commission

Applicant

Power Metals Recyclers (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Power Metals Recyclers (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing and collusive tendering with competitors.
  2. 2 Whether the consent agreement between the Competition Commission and Power Metals Recyclers (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 Whether an administrative penalty is appropriate and properly calculated under the Act.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Power Metals Recyclers (Pty) Ltd as an order. Power Metals admitted to contravening section 4(1)(b)(i) of the Competition Act by engaging in price fixing and collusive tendering with competitors in the non-ferrous scrap metal market. The Tribunal accepted the administrative penalty of R12,773,587.55, representing 5% of Power Metals' annual turnover for the year ended February 2006, as appropriate and in accordance with the Act. The Tribunal further noted the respondent's undertakings to cease the prohibited conduct, implement a compliance programme, and cooperate with ongoing investigations. The order...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Power Metals concluded.

Orders

  • The consent agreement between the Competition Commission and Power Metals Recyclers (Pty) Ltd is confirmed as an order of the Tribunal.
  • Power Metals Recyclers (Pty) Ltd shall pay an administrative penalty of R12,773,587.55 within three months of the date of confirmation of this order.