Competition Commission v Sasol Chemical Industries Ltd (48/CR/Aug10) [2011] ZACT 9 (24 February 2011)

Competition Commission v Sasol Chemical Industries Ltd (48/CR/Aug10) [2011] ZACT 9 (24 February 2011)

The Tribunal confirmed the settlement agreement between the Competition Commission and Sasol Chemical Industries Limited, finding that the pricing formula and related provisions of the supply agreement between Sasol and Safripol amounted to indirect price fixing in contravention of section 4(1)(b)(i) of the Competition Act. Sasol admitted the contravention and agreed to amend the supply agreement to ensure independent pricing of propylene and to refrain from sharing competitively sensitive information. Sasol also undertook to implement a revised competition law compliance programme and to pay an administrative penalty of R111,690,000.00, representing 3% of its annual turnover from...

Citation
[2011] ZACT 9
Parties
Applicant: Competition Commission; Respondent: Sasol Chemical Industries Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
24 February 2011
Case Number
48/CR/Aug10
Procedural Posture
Consent Order Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as a consent order; administrative penalty imposed; undertakings for future conduct and amendment of supply agreement accepted.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Horizontal Price Fixing, Restrictive Agreements, Administrative Penalty, Settlement Agreement, Supply Agreement Amendment
Competition Law Commercial and Corporate Horizontal Price Fixing Restrictive Agreements Administrative Penalty Settlement Agreement Supply Agreement Amendment

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Parties

Competition Commission

Applicant

Sasol Chemical Industries Limited

Respondent

Procedural Posture

Consent Order Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether the pricing formula and related provisions of the supply agreement between Sasol and Safripol constituted indirect price fixing in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether Sasol Polymers is liable for an administrative penalty for contravening the Competition Act.
  3. 3 What undertakings and amendments are required to ensure future compliance with the Competition Act.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Sasol Chemical Industries Limited, finding that the pricing formula and related provisions of the supply agreement between Sasol and Safripol amounted to indirect price fixing in contravention of section 4(1)(b)(i) of the Competition Act. Sasol admitted the contravention and agreed to amend the supply agreement to ensure independent pricing of propylene and to refrain from sharing competitively sensitive information. Sasol also undertook to implement a revised competition law compliance programme and to pay an administrative penalty of R111,690,000.00, representing 3% of its annual turnover from...

Court Disposition

Settlement agreement confirmed as a consent order; administrative penalty imposed; undertakings for future conduct and amendment of supply agreement accepted.

Orders

  • The settlement agreement between the Competition Commission and Sasol Chemical Industries Limited is confirmed as an order of the Tribunal.
  • Sasol Polymers shall pay an administrative penalty of R111,690,000.00 to the Competition Commission within sixty days of confirmation of the order.