Competition Commission v Rand Merchant Bank, a division of First Rand Bank Ltd (44/CR/Jun11) [2011] ZACT 51; [2011] 2 CPLR 286 (CT) (14 July 2011)

Competition Commission v Rand Merchant Bank, a division of First Rand Bank Ltd (44/CR/Jun11) [2011] ZACT 51; [2011] 2 CPLR 286 (CT) (14 July 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and Rand Merchant Bank, finding that clause 4.4 of the agreement between RMB and NWK constituted market allocation in contravention of section 4(1)(b)(ii) of the Competition Act. RMB admitted the contravention and agreed to pay an administrative penalty of R2.1 million, representing 3% of the value of grain affected by the clause. RMB also undertook to cooperate with the Commission in any further proceedings, refrain from future anti-competitive contractual undertakings, and implement a competition law compliance programme. The Tribunal accepted these terms as a full and final settlement of the proceedings and...

Citation
[2011] ZACT 51
Parties
Applicant: Competition Commission; Respondent: Rand Merchant Bank, a division of First Rand Bank Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
14 July 2011
Case Number
44/CR/Jun11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Rand Merchant Bank relating to the alleged contravention are fully and finally settled.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Market Allocation, Administrative Penalty, Consent Agreement, Horizontal Agreement
Competition Law Commercial and Corporate Market Allocation Administrative Penalty Consent Agreement Horizontal Agreement

Case Brief

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Parties

Competition Commission

Applicant

Rand Merchant Bank, a division of First Rand Bank Limited

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether clause 4.4 of the agreement between Rand Merchant Bank and Noordwes Ko-operasie Limited constituted market allocation in contravention of section 4(1)(b)(ii) of the Competition Act.
  2. 2 Whether the conduct warranted the imposition of an administrative penalty under the Competition Act.
  3. 3 Whether the consent agreement should be confirmed as an order of the Tribunal.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Rand Merchant Bank, finding that clause 4.4 of the agreement between RMB and NWK constituted market allocation in contravention of section 4(1)(b)(ii) of the Competition Act. RMB admitted the contravention and agreed to pay an administrative penalty of R2.1 million, representing 3% of the value of grain affected by the clause. RMB also undertook to cooperate with the Commission in any further proceedings, refrain from future anti-competitive contractual undertakings, and implement a competition law compliance programme. The Tribunal accepted these terms as a full and final settlement of the proceedings and...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Proceedings between the Commission and Rand Merchant Bank relating to the alleged contravention are fully and finally settled.

Orders

  • The consent agreement between the Competition Commission and Rand Merchant Bank is confirmed as an order of the Tribunal.
  • Rand Merchant Bank shall pay an administrative penalty of R2.1 million to the Competition Commission within six months of confirmation of the consent agreement.