Competition Commission v Primkop Airport Management (Pty) Ltd (016691) [2013] ZACT 47 (7 June 2013)

Competition Commission v Primkop Airport Management (Pty) Ltd (016691) [2013] ZACT 47 (7 June 2013)

The Tribunal found that the MOU between SanParks and PAM constituted a market division agreement, as SanParks agreed to downgrade Skukuza Airport and refrain from competing with PAM in exchange for monetary compensation. This arrangement contravened section 4(1)(b)(ii) of the Competition Act. The Tribunal confirmed the consent agreement, which included an administrative penalty of R2 million (4% of PAM's 2009 turnover) and the cessation of the MOU's effects. The addendum clarified that the MOU is no longer in force and that SanParks confirmed its lapse in 2003. The order resolves all proceedings between the Commission and PAM regarding the alleged contravention.

Citation
[2013] ZACT 47
Parties
Applicant: Competition Commission; Respondent: Primkop Airport Management (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
7 June 2013
Case Number
016691
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; all proceedings between the Commission and PAM regarding the alleged contravention resolved.
Judges
N Manoim, M Mazwai, A Ndoni
Legal Topics
Market Division, Administrative Penalty, Consent Agreement, Section 4 1 B Ii, Leniency Policy
Competition Law Market Division Administrative Penalty Consent Agreement Section 4 1 B Ii Leniency Policy

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Parties

Competition Commission

Applicant

Primkop Airport Management (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether the Memorandum of Understanding between SanParks and PAM constituted market division in contravention of section 4(1)(b)(ii) of the Competition Act.
  2. 2 Whether the administrative penalty agreed upon is appropriate under the Competition Act.
  3. 3 Whether the consent agreement and its addendum fully resolve all proceedings between the parties regarding the alleged contravention.

Ratio Decidendi

The Tribunal found that the MOU between SanParks and PAM constituted a market division agreement, as SanParks agreed to downgrade Skukuza Airport and refrain from competing with PAM in exchange for monetary compensation. This arrangement contravened section 4(1)(b)(ii) of the Competition Act. The Tribunal confirmed the consent agreement, which included an administrative penalty of R2 million (4% of PAM's 2009 turnover) and the cessation of the MOU's effects. The addendum clarified that the MOU is no longer in force and that SanParks confirmed its lapse in 2003. The order resolves all proceedings between the Commission and PAM regarding the alleged contravention.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; all proceedings between the Commission and PAM regarding the alleged contravention resolved.

Orders

  • The consent agreement between the Competition Commission and Primkop Airport Management (Pty) Ltd is confirmed as an order of the Tribunal.
  • Primkop Airport Management (Pty) Ltd shall pay an administrative penalty of R2 million to the Competition Commission within 30 days of confirmation of the order.