Competition Commission v Rainbow Farms (Pty) Ltd (01/CR/Jan10) [2010] ZACT 59; [2010] 2 CPLR 276 (CT) (1 September 2010)

Competition Commission v Rainbow Farms (Pty) Ltd (01/CR/Jan10) [2010] ZACT 59; [2010] 2 CPLR 276 (CT) (1 September 2010)

Rainbow Farms (Pty) Ltd, through its division Epol Berlin, engaged in minimum resale price maintenance by dictating the resale prices to DL Agricultural Supplies and Jireh Powersave, which constitutes a contravention of section 5(2) of the Competition Act. Rainbow admitted the contravention and agreed to a settlement with the Competition Commission, including the payment of an administrative penalty and the implementation of compliance measures. The Tribunal, satisfied with the terms of the settlement and the admission of liability, confirmed the agreement as an order. The penalty and undertakings are appropriate to address the contravention and deter future prohibited practices.

Citation
[2010] ZACT 59
Parties
Applicant: Competition Commission; Respondent: Rainbow Farms (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 September 2010
Case Number
01/CR/Jan10
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Minimum Resale Price Maintenance, Administrative Penalty, Section 5 2 Competition Act, Compliance Programme, Settlement Agreement
Competition Law Minimum Resale Price Maintenance Administrative Penalty Section 5 2 Competition Act Compliance Programme Settlement Agreement

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Parties

Competition Commission

Applicant

Rainbow Farms (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Rainbow Farms (Pty) Ltd contravened section 5(2) of the Competition Act by engaging in minimum resale price maintenance.
  2. 2 Whether the settlement agreement between the Competition Commission and Rainbow Farms (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contravention.

Ratio Decidendi

Rainbow Farms (Pty) Ltd, through its division Epol Berlin, engaged in minimum resale price maintenance by dictating the resale prices to DL Agricultural Supplies and Jireh Powersave, which constitutes a contravention of section 5(2) of the Competition Act. Rainbow admitted the contravention and agreed to a settlement with the Competition Commission, including the payment of an administrative penalty and the implementation of compliance measures. The Tribunal, satisfied with the terms of the settlement and the admission of liability, confirmed the agreement as an order. The penalty and undertakings are appropriate to address the contravention and deter future prohibited practices.

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission and Rainbow Farms (Pty) Ltd is confirmed as an order of the Tribunal.
  • Rainbow Farms (Pty) Ltd shall pay an administrative penalty of R1,000,000.00 within ninety days of confirmation of the order.