Competition Commission v Stefanutti Stocks Holdings Ltd (017038) [2013] ZACT 63 (22 July 2013)

Competition Commission v Stefanutti Stocks Holdings Ltd (017038) [2013] ZACT 63 (22 July 2013)

The Tribunal found that Stefanutti Stocks Holdings Ltd admitted to engaging in collusive tendering and bid-rigging practices in violation of section 4(1)(b)(iii) of the Competition Act. The respondent disclosed twenty-one non-prescribed prohibited practices, provided full cooperation, and undertook to cease such conduct and implement compliance measures. The administrative penalty was calculated in accordance with the Commission’s Invitation, based on turnover in the relevant subsectors. The Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the Commission and Stefanutti in respect of the specified conduct.

Citation
[2013] ZACT 63
Parties
Applicant: Competition Commission; Respondent: Stefanutti Stocks Holdings Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017038
Procedural Posture
Consent Order Application / Application for Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Consent Agreement, Market Allocation, Price Fixing
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Consent Agreement Market Allocation Price Fixing

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Parties

Competition Commission

Applicant

Stefanutti Stocks Holdings Ltd

Respondent

Procedural Posture

Consent Order Application / Application for Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Stefanutti Stocks Holdings Ltd contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering and bid-rigging.
  2. 2 Whether the consent agreement between the Competition Commission and Stefanutti Stocks Holdings Ltd should be confirmed as an order of the Tribunal.
  3. 3 Determination of the appropriate administrative penalty for the admitted contraventions.

Ratio Decidendi

The Tribunal found that Stefanutti Stocks Holdings Ltd admitted to engaging in collusive tendering and bid-rigging practices in violation of section 4(1)(b)(iii) of the Competition Act. The respondent disclosed twenty-one non-prescribed prohibited practices, provided full cooperation, and undertook to cease such conduct and implement compliance measures. The administrative penalty was calculated in accordance with the Commission’s Invitation, based on turnover in the relevant subsectors. The Tribunal confirmed the consent agreement as an order, thereby concluding all proceedings between the Commission and Stefanutti in respect of the specified conduct.

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.

Orders

  • The consent agreement between the Competition Commission and Stefanutti Stocks Holdings Ltd is confirmed as an order of the Tribunal.
  • Stefanutti Stocks Holdings Ltd shall pay an administrative penalty of R306,892,664 in four instalments over three years, with interest of 10% per annum on the fourth payment.