Competition Commission v Premium Brand Distributors (Pty) Ltd (CR210Mar14/SA156Nov16) [2016] ZACT 114; [2016] 2 CPLR 663 (CT) (7 December 2016)

Competition Commission v Premium Brand Distributors (Pty) Ltd (CR210Mar14/SA156Nov16) [2016] ZACT 114; [2016] 2 CPLR 663 (CT) (7 December 2016)

The Tribunal confirmed the settlement agreement between the Competition Commission and Premium Brand Distributors (Pty) Ltd. Premium Brand admitted to coordinating the advertisement and pricing of Nikon products among its retailer network, conduct which may have contravened section 5(2) of the Competition Act by engaging in resale price maintenance. The Tribunal found that the settlement agreement, which included an undertaking to cease such conduct, implement a compliance programme, and pay an administrative penalty of R300,500, was appropriate and in accordance with the provisions of the Act. The penalty did not exceed the statutory maximum and the compliance undertakings were...

Citation
[2016] ZACT 114
Parties
Applicant: Competition Commission; Respondent: Premium Brand Distributors (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 December 2016
Case Number
CR210Mar14/SA156Nov16
Procedural Posture
Settlement Application / Settlement Agreement Confirmation
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
M Mazwai, A Ndoni, I Valodia
Legal Topics
Vertical Agreements, Resale Price Maintenance, Administrative Penalty, Section 5 2 Contravention
Competition Law Commercial and Corporate Vertical Agreements Resale Price Maintenance Administrative Penalty Section 5 2 Contravention

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Parties

Competition Commission

Applicant

Premium Brand Distributors (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Settlement Agreement Confirmation

Legal Issues

  1. 1 Whether Premium Brand Distributors engaged in resale price maintenance in contravention of section 5(2) of the Competition Act.
  2. 2 Whether the settlement 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 settlement agreement between the Competition Commission and Premium Brand Distributors (Pty) Ltd. Premium Brand admitted to coordinating the advertisement and pricing of Nikon products among its retailer network, conduct which may have contravened section 5(2) of the Competition Act by engaging in resale price maintenance. The Tribunal found that the settlement agreement, which included an undertaking to cease such conduct, implement a compliance programme, and pay an administrative penalty of R300,500, was appropriate and in accordance with the provisions of the Act. The penalty did not exceed the statutory maximum and the compliance undertakings were...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Premium Brand Distributors (Pty) Ltd is confirmed as an order of the Tribunal.
  • Premium Brand Distributors (Pty) Ltd must pay an administrative penalty of R300,500 to the Competition Commission within three months of this order.