Competition Commission v Singapore Airlines Ltd (45/CR/Apr12) [2012] ZACT 38; [2012] 2 CPLR 245 (CT) (15 May 2012)

Competition Commission v Singapore Airlines Ltd (45/CR/Apr12) [2012] ZACT 38; [2012] 2 CPLR 245 (CT) (15 May 2012)

The Tribunal found that Singapore Airlines, through its local representatives, engaged in discussions with competitors regarding air fare rates and price increases for flights from South Africa to the Far East, in contravention of section 4(1)(b)(i) of the Competition Act. Singapore Airlines admitted liability, cooperated with the Commission, and agreed to pay an administrative penalty equivalent to 7.56% of its passenger turnover out of South Africa for the 2009/2010 financial year, not exceeding the statutory maximum. The Tribunal was satisfied that the settlement agreement, including undertakings regarding future compliance and cooperation, was appropriate and in accordance with the...

Citation
[2012] ZACT 38
Parties
Applicant: Competition Commission; Respondent: Singapore Airlines Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 May 2012
Case Number
45/CR/Apr12
Procedural Posture
Consent Order Application / Order Confirming Settlement Agreement
Outcome
Consent order confirmed; administrative penalty imposed; proceedings between the Commission and Singapore Airlines concluded.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Cartel Conduct, Price Fixing, Administrative Penalty, Consent Order, Section 4 1 B I, Corporate Leniency Policy
Competition Law Cartel Conduct Price Fixing Administrative Penalty Consent Order Section 4 1 B I Corporate Leniency Policy

Case Brief

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Parties

Competition Commission

Applicant

Singapore Airlines Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether Singapore Airlines contravened section 4(1)(b)(i) of the Competition Act by engaging in price-fixing discussions with competitors.
  2. 2 Whether the settlement agreement and administrative penalty are appropriate under the Competition Act.
  3. 3 Whether the Tribunal should confirm the consent order as proposed.

Ratio Decidendi

The Tribunal found that Singapore Airlines, through its local representatives, engaged in discussions with competitors regarding air fare rates and price increases for flights from South Africa to the Far East, in contravention of section 4(1)(b)(i) of the Competition Act. Singapore Airlines admitted liability, cooperated with the Commission, and agreed to pay an administrative penalty equivalent to 7.56% of its passenger turnover out of South Africa for the 2009/2010 financial year, not exceeding the statutory maximum. The Tribunal was satisfied that the settlement agreement, including undertakings regarding future compliance and cooperation, was appropriate and in accordance with the...

Court Disposition

Consent order confirmed; administrative penalty imposed; proceedings between the Commission and Singapore Airlines concluded.

Orders

  • The settlement agreement between the Competition Commission and Singapore Airlines is confirmed as a consent order.
  • Singapore Airlines shall pay an administrative penalty of R25,106,692.00 to the Competition Commission within 30 calendar days of confirmation of this order.