Competition Commission v The Dorper Sheep Breeders Society of South Africa (017301) [2013] ZACT 82 (31 July 2013)

Competition Commission v The Dorper Sheep Breeders Society of South Africa (017301) [2013] ZACT 82 (31 July 2013)

The Tribunal found that the Dorper Sheep Breeders Society of South Africa contravened section 4(1)(b)(i) and (ii) of the Competition Act by fixing minimum prices for dorper sheep and restricting private sales across provinces or regions. The Society admitted the contraventions, amended its Rules of Sale to remove the offending provisions, and agreed to pay an administrative penalty of R24,171.30. The Society also undertook to implement a competition law compliance programme within six months to prevent future contraventions. The Tribunal confirmed the consent agreement and its addendum as an order, concluding all proceedings between the parties regarding these contraventions.

Citation
[2013] ZACT 82
Parties
Applicant: The Competition Commission; Respondent: The Dorper Sheep Breeders Society of South Africa
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
31 July 2013
Case Number
017301
Procedural Posture
Consent Order / Order Confirming Settlement Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted.
Judges
A Wessels, A Ndoni, A Roskam
Legal Topics
Price Fixing, Market Division, Administrative Penalty, Consent Agreement, Competition Compliance Programme
Competition Law Price Fixing Market Division Administrative Penalty Consent Agreement Competition Compliance Programme

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Parties

The Competition Commission

Applicant

The Dorper Sheep Breeders Society of South Africa

Respondent

Procedural Posture

Consent Order / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Whether the Society's Rules of Sale contravened section 4(1)(b)(i) and (ii) of the Competition Act by fixing prices and dividing markets.
  2. 2 Whether the Society is liable for an administrative penalty under the Competition Act.
  3. 3 Whether the settlement agreement and compliance undertakings are sufficient to resolve the contraventions.

Ratio Decidendi

The Tribunal found that the Dorper Sheep Breeders Society of South Africa contravened section 4(1)(b)(i) and (ii) of the Competition Act by fixing minimum prices for dorper sheep and restricting private sales across provinces or regions. The Society admitted the contraventions, amended its Rules of Sale to remove the offending provisions, and agreed to pay an administrative penalty of R24,171.30. The Society also undertook to implement a competition law compliance programme within six months to prevent future contraventions. The Tribunal confirmed the consent agreement and its addendum as an order, concluding all proceedings between the parties regarding these contraventions.

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted.

Orders

  • The consent agreement between the Competition Commission and the Dorper Sheep Breeders Society of South Africa is confirmed as an order of the Tribunal.
  • The Society shall pay an administrative penalty of R24,171.30 into the Competition Commission Fee Account.