Competition Commission v Siyavuma Sports Group (Pty) Ltd (CR190Oct17; SA071Aug23) [2023] ZACT 41; [2023] 3 CPLR 48 (CT) (15 September 2023)

Competition Commission v Siyavuma Sports Group (Pty) Ltd (CR190Oct17; SA071Aug23) [2023] ZACT 41; [2023] 3 CPLR 48 (CT) (15 September 2023)

The Tribunal confirmed the consent agreement between the Competition Commission and Siyavuma Sports Group (Pty) Ltd. Although Siyavuma Sports did not admit liability, it agreed to pay an administrative penalty of R90,000, which is less than 10% of its annual turnover for the relevant financial year. The respondent undertook to cooperate with the Commission in future prosecutions, refrain from cartel conduct, and implement ongoing compliance training. The Tribunal found that the agreement was in accordance with the provisions of the Competition Act and that the penalty and undertakings were appropriate to resolve the matter and deter future contraventions.

Citation
[2023] ZACT 41
Parties
Applicant: Competition Commission; Respondent: Siyavuma Sports Group (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
15 September 2023
Case Number
CR190Oct17/SA071Aug23
Procedural Posture
Settlement Application / Consent Agreement Confirmation Before Tribunal
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; undertakings regarding future conduct accepted.
Judges
S Goga, F Tregenna, A Ndoni
Legal Topics
Price Fixing, Cartel Conduct, Administrative Penalty, Consent Agreement, Future Conduct Undertaking
Competition Law Price Fixing Cartel Conduct Administrative Penalty Consent Agreement Future Conduct Undertaking

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Parties

Competition Commission

Applicant

Siyavuma Sports Group (Pty) Ltd

Respondent

Procedural Posture

Settlement Application / Consent Agreement Confirmation Before Tribunal

Legal Issues

  1. 1 Whether Siyavuma Sports Group (Pty) Ltd contravened section 4(1)(b)(i) of the Competition Act by engaging in price fixing and fixing trading conditions with competitors.
  2. 2 Whether the settlement agreement between the Competition Commission and Siyavuma Sports Group (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty and undertakings are appropriate in the circumstances.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Siyavuma Sports Group (Pty) Ltd. Although Siyavuma Sports did not admit liability, it agreed to pay an administrative penalty of R90,000, which is less than 10% of its annual turnover for the relevant financial year. The respondent undertook to cooperate with the Commission in future prosecutions, refrain from cartel conduct, and implement ongoing compliance training. The Tribunal found that the agreement was in accordance with the provisions of the Competition Act and that the penalty and undertakings were appropriate to resolve the matter and deter future contraventions.

Court Disposition

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

Orders

  • The settlement agreement between the Competition Commission and Siyavuma Sports Group (Pty) Ltd is confirmed as an order of the Tribunal.
  • Siyavuma Sports Group (Pty) Ltd shall pay an administrative penalty of R90,000 in two equal installments as stipulated in the agreement.