Competition Commission v Shekinah Medical and Disposables CC (016857) [2013] ZACT 59; - (16 July 2013)

Competition Commission v Shekinah Medical and Disposables CC (016857) [2013] ZACT 59; - (16 July 2013)

The Tribunal confirmed the settlement agreement between the Competition Commission and Shekinah Medical and Disposables CC as an order. Shekinah admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Hosanna Medical & Disposables CC in relation to a government tender for HIV test kits. The Tribunal found that the agreed administrative penalty of R143,143.69, representing 4% of Shekinah's affected turnover for the relevant financial year, was appropriate. The Tribunal also endorsed the compliance measures, including the development and implementation of a compliance programme and cooperation with the Commission in future proceedings. The...

Citation
[2013] ZACT 59
Parties
Applicant: Competition Commission; Respondent: Shekinah Medical and Disposables CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 July 2013
Case Number
016857
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Compliance programme to be implemented.
Judges
A Wessels, A Ndoni, M Mokuena
Legal Topics
Cartel Conduct, Administrative Penalty, Settlement Agreement, Section 4 1 B Iii, Compliance Programme
Competition Law Cartel Conduct Administrative Penalty Settlement Agreement Section 4 1 B Iii Compliance Programme

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Parties

Competition Commission

Applicant

Shekinah Medical and Disposables CC

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Shekinah Medical and Disposables CC contravened section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Hosanna Medical & Disposables CC.
  2. 2 Whether the settlement agreement between the Competition Commission and Shekinah should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty and compliance measures are appropriate in light of the admitted contravention.

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Shekinah Medical and Disposables CC as an order. Shekinah admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in cartel conduct with Hosanna Medical & Disposables CC in relation to a government tender for HIV test kits. The Tribunal found that the agreed administrative penalty of R143,143.69, representing 4% of Shekinah's affected turnover for the relevant financial year, was appropriate. The Tribunal also endorsed the compliance measures, including the development and implementation of a compliance programme and cooperation with the Commission in future proceedings. The...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Compliance programme to be implemented.

Orders

  • The settlement agreement between the Competition Commission and Shekinah Medical and Disposables CC is confirmed as an order of the Tribunal.
  • Shekinah Medical and Disposables CC must pay an administrative penalty of R143,143.69 as specified in the agreement.