Competition Commission v Stanley's Removals CC and Another (CR030Jun15) [2016] ZACT 89; [2016] 2 CPLR 531 (CT) (12 December 2016)

Competition Commission v Stanley's Removals CC and Another (CR030Jun15) [2016] ZACT 89; [2016] 2 CPLR 531 (CT) (12 December 2016)

Stanley's Removals CC admitted to eight instances of collusive tendering and bid-rigging with Cape Express Removals, contravening section 4(1)(b)(iii) of the Competition Act. The Tribunal considered the proportionality and fairness of the penalty, taking into account the value of the affected tenders, Stanley's cooperation, and penalties imposed in similar cases. The Tribunal rejected both the Commission's guidelines and the Aveng methodology as inappropriate templates for this case, given the recurring but not overarching nature of the contraventions. The Tribunal determined that the 2012 financial year was the most representative for penalty calculation and imposed a penalty of...

Citation
[2016] ZACT 89
Parties
Applicant: Competition Commission; Respondent: Stanley's Removals CC; Respondent: Cape Express Removals (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 December 2016
Case Number
CR030Jun15
Procedural Posture
Civil Enforcement / Penalty Determination After Admission of Contraventions
Outcome
Stanley's Removals CC found to have contravened section 4(1)(b)(iii) of the Competition Act through collusive tendering and bid-rigging. Administrative penalty imposed.
Judges
Norman Manoim, Anton Roskam, Mondo Mazwai
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Section 4 1 B Iii, Proportionality of Penalty
Competition Law Collusive Tendering Bid Rigging Administrative Penalty Section 4 1 B Iii Proportionality of Penalty

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Parties

Competition Commission

Applicant

Stanley's Removals CC

Respondent

Cape Express Removals (Pty) Ltd

Respondent

Procedural Posture

Civil Enforcement / Penalty Determination After Admission of Contraventions

Legal Issues

  1. 1 Whether Stanley's Removals CC contravened section 4(1)(b)(iii) of the Competition Act through collusive tendering and bid-rigging.
  2. 2 What is the appropriate and proportional administrative penalty to be imposed for the admitted contraventions.

Ratio Decidendi

Stanley's Removals CC admitted to eight instances of collusive tendering and bid-rigging with Cape Express Removals, contravening section 4(1)(b)(iii) of the Competition Act. The Tribunal considered the proportionality and fairness of the penalty, taking into account the value of the affected tenders, Stanley's cooperation, and penalties imposed in similar cases. The Tribunal rejected both the Commission's guidelines and the Aveng methodology as inappropriate templates for this case, given the recurring but not overarching nature of the contraventions. The Tribunal determined that the 2012 financial year was the most representative for penalty calculation and imposed a penalty of...

Court Disposition

Stanley's Removals CC found to have contravened section 4(1)(b)(iii) of the Competition Act through collusive tendering and bid-rigging. Administrative penalty imposed.

Orders

  • Stanley's Removals CC is ordered to pay an administrative penalty of R450,000.00, payable in two equal instalments: the first within four months of the date of this order, and the second four months thereafter.
  • No order as to costs is made.