Competition Commission v Shashe Trading (Pty) Ltd and Another (FTN154Nov20) [2021] ZACT 87 (3 June 2021)

Competition Commission v Shashe Trading (Pty) Ltd and Another (FTN154Nov20) [2021] ZACT 87 (3 June 2021)

The Tribunal found that Shashe Trading (Pty) Ltd and Devenco 44 (Pty) Ltd implemented a merger without prior notification or approval, in contravention of section 13A of the Competition Act. Both respondents admitted to the contravention and agreed to pay an administrative penalty of R350,000, which does not exceed the statutory maximum. The Tribunal was satisfied that the settlement agreement was entered into voluntarily, addressed the contravention, and included undertakings for future compliance. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings relating to the contravention under the relevant case number.

Citation
[2021] ZACT 87
Parties
Applicant: Competition Commission; Respondent: Shashe Trading (Pty) Ltd; Respondent: Devenco 44 (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
3 June 2021
Case Number
FTN154Nov20
Procedural Posture
Settlement Confirmation / Settlement Agreement Confirmation Before Tribunal
Outcome
Settlement agreement confirmed as an order of the Tribunal; respondents jointly and severally liable for administrative penalty.
Judges
AW Wessels, E Daniels, A Ndoni
Legal Topics
Failure to Notify Merger, Unlawful Implementation of Merger, Administrative Penalty, Section 13a Competition Act, Merger Control
Competition Law Commercial and Corporate Failure to Notify Merger Unlawful Implementation of Merger Administrative Penalty Section 13a Competition Act Merger Control

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Parties

Competition Commission

Applicant

Shashe Trading (Pty) Ltd

Respondent

Devenco 44 (Pty) Ltd

Respondent

Procedural Posture

Settlement Confirmation / Settlement Agreement Confirmation Before Tribunal

Legal Issues

  1. 1 Did the respondents implement a merger without prior notification to the Competition Commission as required by section 13A of the Competition Act?
  2. 2 Are the respondents liable for an administrative penalty for contravention of the Competition Act?
  3. 3 Should the settlement agreement between the parties be confirmed as an order of the Tribunal?

Ratio Decidendi

The Tribunal found that Shashe Trading (Pty) Ltd and Devenco 44 (Pty) Ltd implemented a merger without prior notification or approval, in contravention of section 13A of the Competition Act. Both respondents admitted to the contravention and agreed to pay an administrative penalty of R350,000, which does not exceed the statutory maximum. The Tribunal was satisfied that the settlement agreement was entered into voluntarily, addressed the contravention, and included undertakings for future compliance. The Tribunal confirmed the settlement agreement as an order, thereby concluding all proceedings relating to the contravention under the relevant case number.

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; respondents jointly and severally liable for administrative penalty.

Orders

  • The settlement agreement between the Competition Commission, Shashe Trading (Pty) Ltd, and Devenco 44 (Pty) Ltd is confirmed as an order of the Tribunal.
  • The respondents are jointly and severally liable to pay an administrative penalty of R350,000 to the Competition Commission within 30 days of confirmation of the settlement agreement.