Competition Commission v Senwes Ltd (43/CR/Jun11) [2011] ZACT 90; [2012] 1 CPLR 109 (CT) (9 November 2011)

Competition Commission v Senwes Ltd (43/CR/Jun11) [2011] ZACT 90; [2012] 1 CPLR 109 (CT) (9 November 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and Senwes Ltd, finding that Senwes, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act. The conduct involved joint determination of storage rates among competitors, facilitated by the Grain Silo Industry's technical committee, and was applied nationally. Senwes admitted the contravention and agreed to pay an administrative penalty amounting to 4% of its 2009 grain silo turnover, totalling R7,628,670.36, payable in four instalments. Senwes further undertook to cooperate with the Commission...

Citation
[2011] ZACT 90
Parties
Applicant: Competition Commission; Respondent: Senwes Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; undertakings regarding future conduct accepted.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Future Conduct Undertaking
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Consent Agreement Future Conduct Undertaking

Case Brief

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Parties

Competition Commission

Applicant

Senwes Ltd

Respondent

Procedural Posture

Consent Order / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Senwes Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether the conduct warrants the imposition of an administrative penalty under the Competition Act.
  3. 3 Whether the consent agreement and undertakings by Senwes Ltd are sufficient to resolve the contravention and prevent future violations.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Senwes Ltd, finding that Senwes, as a member of the Grain Silo Industry, participated in prohibited price fixing of daily grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act. The conduct involved joint determination of storage rates among competitors, facilitated by the Grain Silo Industry's technical committee, and was applied nationally. Senwes admitted the contravention and agreed to pay an administrative penalty amounting to 4% of its 2009 grain silo turnover, totalling R7,628,670.36, payable in four instalments. Senwes further undertook to cooperate with the Commission...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; undertakings regarding future conduct accepted.

Orders

  • Senwes Ltd shall pay an administrative penalty of R7,628,670.36 to the Competition Commission in four instalments as specified in the agreement.
  • Senwes Ltd shall implement and monitor a competition law compliance programme for a period of three years.