Competition Commission v Supra Healthcare Cape Town (Pty) Ltd (CO204Mar21) [2021] ZACT 91 (12 March 2021)

Competition Commission v Supra Healthcare Cape Town (Pty) Ltd (CO204Mar21) [2021] ZACT 91 (12 March 2021)

The Tribunal confirmed the consent agreement between the Competition Commission and Supra Healthcare Cape Town (Pty) Ltd. The Commission's investigation established that Supra Healthcare charged excessive prices for medical examination gloves supplied to the Western Cape Department of Health during the Covid-19 disaster period, with profit margins exceeding the public procurement benchmark. Supra Healthcare did not dispute the findings and agreed to a settlement including undertakings to desist from excessive pricing, implement a compliance programme, and provide surgical masks to the Department at cost price. The Tribunal found the settlement appropriate and confirmed it as an order,...

Citation
[2021] ZACT 91
Parties
Applicant: Competition Commission; Respondent: Supra Healthcare Cape Town (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 March 2021
Case Number
CO204Mar21
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; full and final settlement of all proceedings relating to the alleged contravention.
Judges
AW Wessels, Y Carrim, E Daniels
Legal Topics
Excessive Pricing, Covid 19 Regulations, Dominance, Public Procurement, Section 8 Competition Act
Competition Law Commercial and Corporate Excessive Pricing Covid 19 Regulations Dominance Public Procurement Section 8 Competition Act

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Parties

Competition Commission

Applicant

Supra Healthcare Cape Town (Pty) Ltd

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether Supra Healthcare charged excessive prices for medical examination gloves to the Western Cape Department of Health during the Covid-19 disaster period.
  2. 2 Whether the conduct contravened section 8(1)(a) of the Competition Act read with Regulation 4 of the Consumer and Customer Protection and National Disaster Management Regulations.
  3. 3 Whether the settlement and undertakings offered by Supra Healthcare are sufficient to resolve the alleged contravention.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Supra Healthcare Cape Town (Pty) Ltd. The Commission's investigation established that Supra Healthcare charged excessive prices for medical examination gloves supplied to the Western Cape Department of Health during the Covid-19 disaster period, with profit margins exceeding the public procurement benchmark. Supra Healthcare did not dispute the findings and agreed to a settlement including undertakings to desist from excessive pricing, implement a compliance programme, and provide surgical masks to the Department at cost price. The Tribunal found the settlement appropriate and confirmed it as an order,...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; full and final settlement of all proceedings relating to the alleged contravention.

Orders

  • Supra Healthcare must immediately desist from excessive pricing conduct as described.
  • Supra Healthcare must implement and monitor a competition law compliance programme and submit it to the Commission within 60 business days.