Competition Commission v Spring Lights Gas (Pty) Ltd (11569) [2013] ZACT 25 (11 April 2013)

Competition Commission v Spring Lights Gas (Pty) Ltd (11569) [2013] ZACT 25 (11 April 2013)

The Tribunal found that Spring Lights Gas (Pty) Ltd and Sasol Gas had entered into a suite of agreements that divided the market for piped gas by allocating customers and territories, and engaged in price-fixing through the Administration Services Agreement. These practices constituted contraventions of section 4(1)(b)(i) and (ii) of the Competition Act. Although the rationale for the arrangements was to promote Black Economic Empowerment, the exemption application was refused by the Commission, and the conduct remained prohibited. Spring Lights admitted the contraventions and agreed to cease all prohibited conduct, implement compliance measures, and pay an administrative penalty of R10.8...

Citation
[2013] ZACT 25
Parties
Applicant: Competition Commission; Respondent: Spring Lights Gas (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
11 April 2013
Case Number
011569
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. All proceedings between the Commission and Spring Lights Gas (Pty) Ltd in relation to the contraventions are concluded.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Market Allocation, Price Fixing, Administrative Penalty, Black Economic Empowerment, Compliance Programme
Competition Law Market Allocation Price Fixing Administrative Penalty Black Economic Empowerment Compliance Programme

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Competition Commission

Applicant

Spring Lights Gas (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Spring Lights Gas (Pty) Ltd and Sasol Gas entered into agreements that contravened section 4(1)(b)(i) and (ii) of the Competition Act by allocating markets and fixing prices for piped gas.
  2. 2 Whether the conduct qualifies for exemption under section 10(3)(b)(ii) of the Competition Act due to Black Economic Empowerment objectives.
  3. 3 Whether the administrative penalty imposed is appropriate under the Act.

Ratio Decidendi

The Tribunal found that Spring Lights Gas (Pty) Ltd and Sasol Gas had entered into a suite of agreements that divided the market for piped gas by allocating customers and territories, and engaged in price-fixing through the Administration Services Agreement. These practices constituted contraventions of section 4(1)(b)(i) and (ii) of the Competition Act. Although the rationale for the arrangements was to promote Black Economic Empowerment, the exemption application was refused by the Commission, and the conduct remained prohibited. Spring Lights admitted the contraventions and agreed to cease all prohibited conduct, implement compliance measures, and pay an administrative penalty of R10.8...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. All proceedings between the Commission and Spring Lights Gas (Pty) Ltd in relation to the contraventions are concluded.

Orders

  • The main consent agreement dated 20 August 2010 is confirmed as an order of the Tribunal.
  • The addendum dated 30 July 2012 is confirmed as an order of the Tribunal.