Competition Commission v Schenker South Africa (Pty) Ltd (96/CR/Nov11) [2012] ZACT 9 (1 February 2012)

Competition Commission v Schenker South Africa (Pty) Ltd (96/CR/Nov11) [2012] ZACT 9 (1 February 2012)

The Tribunal found that Schenker South Africa (Pty) Ltd admitted to participating in horizontal price fixing with competitors, as detailed in the Commission's investigation. The conduct contravened section 4(1)(b)(i) of the Competition Act. The parties agreed to a consent agreement, including an administrative penalty of R959,000, cooperation undertakings, and the implementation of a compliance programme. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby concluding all proceedings between the Commission and Schenker SA relating to the investigated conduct.

Citation
[2012] ZACT 9
Parties
Applicant: Competition Commission; Respondent: Schenker South Africa (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
1 February 2012
Case Number
96/CR/Nov11
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 Schenker SA concluded.
Judges
Wessels, A Ndoni, M Mokuena
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Section 4 1 B I Contravention
Competition Law Horizontal Price Fixing Administrative Penalty Consent Agreement Section 4 1 B I Contravention

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Parties

Competition Commission

Applicant

Schenker South Africa (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Schenker South Africa (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in horizontal price fixing with competitors.
  2. 2 Whether the administrative penalty agreed upon is appropriate under the Competition Act.
  3. 3 Whether the consent agreement should be confirmed as an order of the Tribunal.

Ratio Decidendi

The Tribunal found that Schenker South Africa (Pty) Ltd admitted to participating in horizontal price fixing with competitors, as detailed in the Commission's investigation. The conduct contravened section 4(1)(b)(i) of the Competition Act. The parties agreed to a consent agreement, including an administrative penalty of R959,000, cooperation undertakings, and the implementation of a compliance programme. The Tribunal was satisfied that the consent agreement complied with the requirements of the Act and confirmed it as an order, thereby concluding all proceedings between the Commission and Schenker SA relating to the investigated conduct.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; proceedings between the Commission and Schenker SA concluded.

Orders

  • The consent agreement between the Competition Commission and Schenker South Africa (Pty) Ltd is confirmed as an order of the Tribunal.
  • Schenker South Africa (Pty) Ltd shall pay an administrative penalty of R959,000 to the Competition Commission within seven days of confirmation of this order.