Competition Commission v Shell South Africa Marketing (Pty) Ltd (06/CR/Mar10) [2012] ZACT 12; [2012] 1 CPLR 115 (CT) (22 February 2012)

Competition Commission v Shell South Africa Marketing (Pty) Ltd (06/CR/Mar10) [2012] ZACT 12; [2012] 1 CPLR 115 (CT) (22 February 2012)

The Tribunal found that Shell South Africa Marketing (Pty) Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by participating in agreements with competitors to fix the price of bitumen and bituminous products through mechanisms such as the WLSP and BPAF. The settlement agreement, reached between the Competition Commission and Shell, includes an administrative penalty of R26,259,480, which does not exceed the statutory maximum of 10% of Shell's annual turnover and exports for 2009. Shell undertook to cooperate with the Commission, desist from the prohibited conduct, and implement a competition law compliance programme. The Tribunal was satisfied that the settlement...

Citation
[2012] ZACT 12
Parties
Applicant: Competition Commission; Respondent: Shell South Africa Marketing (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 February 2012
Case Number
06/CR/Mar10
Procedural Posture
Settlement Application / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.
Judges
A Wessels, M Mokuena, M Holden
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Settlement Agreement, Section 4 1 B I Contravention
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Settlement Agreement Section 4 1 B I Contravention

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Parties

Competition Commission

Applicant

Shell South Africa Marketing (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Did Shell South Africa Marketing (Pty) Ltd contravene section 4(1)(b)(i) of the Competition Act by engaging in price fixing with competitors?
  2. 2 Is the proposed settlement agreement between the Competition Commission and Shell appropriate for confirmation as an order of the Tribunal?
  3. 3 Is the administrative penalty agreed upon within the statutory limits?

Ratio Decidendi

The Tribunal found that Shell South Africa Marketing (Pty) Ltd admitted to contravening section 4(1)(b)(i) of the Competition Act by participating in agreements with competitors to fix the price of bitumen and bituminous products through mechanisms such as the WLSP and BPAF. The settlement agreement, reached between the Competition Commission and Shell, includes an administrative penalty of R26,259,480, which does not exceed the statutory maximum of 10% of Shell's annual turnover and exports for 2009. Shell undertook to cooperate with the Commission, desist from the prohibited conduct, and implement a competition law compliance programme. The Tribunal was satisfied that the settlement...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed.

Orders

  • The settlement agreement between the Competition Commission and Shell South Africa Marketing (Pty) Ltd is confirmed as an order of the Tribunal.
  • Shell South Africa Marketing (Pty) Ltd must pay an administrative penalty of R26,259,480 to the Competition Commission within 30 business days of confirmation of the agreement.