Competition Commission v Suidwes Agriculture (Pty) Ltd (43/CR/Jun11) [2011] ZACT 59; [2011] 2 CPLR 298 (CT) (16 August 2011)

Competition Commission v Suidwes Agriculture (Pty) Ltd (43/CR/Jun11) [2011] ZACT 59; [2011] 2 CPLR 298 (CT) (16 August 2011)

The Tribunal found that Suidwes Agriculture (Pty) Ltd, as a member of the Grain Silo Industry, participated in the joint determination and assent to standardised daily grain storage tariffs, which were recommended to SAFEX and used in the physical market. This conduct constituted prohibited price fixing among competitors in contravention of section 4(1)(b)(i) of the Competition Act. The Tribunal accepted the consent agreement reached between the Commission and Suidwes, which included the payment of an administrative penalty not exceeding 10% of Suidwes's grain silo storage turnover for the 2009 financial year, and required Suidwes to implement a competition law compliance programme and...

Citation
[2011] ZACT 59
Parties
Applicant: Competition Commission; Respondent: Suidwes Agriculture (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
16 August 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed on Suidwes Agriculture (Pty) Ltd.
Judges
N Manoim, Y Carrim, A Wessels
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Grain Storage Tariffs
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Consent Agreement Grain Storage Tariffs

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Parties

Competition Commission

Applicant

Suidwes Agriculture (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Suidwes Agriculture (Pty) Ltd, as a member of the Grain Silo Industry, participated in prohibited price fixing of grain storage tariffs in contravention of section 4(1)(b)(i) of the Competition Act.
  2. 2 Whether the conduct warrants the imposition of an administrative penalty under the Competition Act.
  3. 3 Whether the consent agreement and proposed remedies are appropriate and should be confirmed by the Tribunal.

Ratio Decidendi

The Tribunal found that Suidwes Agriculture (Pty) Ltd, as a member of the Grain Silo Industry, participated in the joint determination and assent to standardised daily grain storage tariffs, which were recommended to SAFEX and used in the physical market. This conduct constituted prohibited price fixing among competitors in contravention of section 4(1)(b)(i) of the Competition Act. The Tribunal accepted the consent agreement reached between the Commission and Suidwes, which included the payment of an administrative penalty not exceeding 10% of Suidwes's grain silo storage turnover for the 2009 financial year, and required Suidwes to implement a competition law compliance programme and...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed on Suidwes Agriculture (Pty) Ltd.

Orders

  • Suidwes Agriculture (Pty) Ltd shall pay an administrative penalty of R4,644,617.65 to the Competition Commission in three instalments: R1,000,000 within 30 days of confirmation, R1,000,000 on or before 31 December 2011, and R2,644,617.65 on or before 30 June 2012.
  • Suidwes Agriculture (Pty) Ltd shall implement a competition law compliance programme and submit a copy to the Commission within 60 days of confirmation of the consent agreement.