Competition Commission v Safripol (Pty) Ltd (48/CR/Aug10) [2010] ZACT 57; [2010] 2 CPLR 280 (CT) (25 August 2010)

Competition Commission v Safripol (Pty) Ltd (48/CR/Aug10) [2010] ZACT 57; [2010] 2 CPLR 280 (CT) (25 August 2010)

The Tribunal confirmed the consent agreement between the Competition Commission and Safripol (Pty) Ltd, finding that Safripol admitted to contravening section 4(1)(b)(i) of the Competition Act by indirectly fixing prices through the Supply Agreement and Pricing Formula with Sasol. The agreement constrained Safripol's ability to compete and incentivised parallel pricing behaviour, resulting in anti-competitive effects in the polypropylene market. Safripol undertook to implement compliance measures, refrain from sharing competitively sensitive information except as required by the agreement, and renegotiate the Supply Agreement to promote competition. The Tribunal imposed an administrative...

Citation
[2010] ZACT 57
Parties
Applicant: Competition Commission; Respondent: Safripol (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
25 August 2010
Case Number
48/CR/Aug10
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 Safripol concluded.
Judges
A Wessels, M Mokuena, T Orleyn
Legal Topics
Horizontal Price Fixing, Restrictive Agreements, Administrative Penalty, Consent Order, Supply Agreement, Information Sharing
Competition Law Commercial and Corporate Horizontal Price Fixing Restrictive Agreements Administrative Penalty Consent Order Supply Agreement Information Sharing

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Parties

Competition Commission

Applicant

Safripol (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Safripol (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing with Sasol.
  2. 2 Whether the Supply Agreement and Pricing Formula between Safripol and Sasol resulted in anti-competitive conduct.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Safripol (Pty) Ltd, finding that Safripol admitted to contravening section 4(1)(b)(i) of the Competition Act by indirectly fixing prices through the Supply Agreement and Pricing Formula with Sasol. The agreement constrained Safripol's ability to compete and incentivised parallel pricing behaviour, resulting in anti-competitive effects in the polypropylene market. Safripol undertook to implement compliance measures, refrain from sharing competitively sensitive information except as required by the agreement, and renegotiate the Supply Agreement to promote competition. The Tribunal imposed an administrative...

Court Disposition

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

Orders

  • The consent agreement between the Competition Commission and Safripol (Pty) Ltd, as amended, is confirmed as an order of the Tribunal.
  • Safripol (Pty) Ltd must pay an administrative penalty of R16,474,573.11 within ninety days of confirmation of the order.