Competition Commission v T.RAD Company Limited (CO112Sep20) [2020] ZACT 69 (21 September 2020)

Competition Commission v T.RAD Company Limited (CO112Sep20) [2020] ZACT 69 (21 September 2020)

The Tribunal confirmed the consent agreement between the Competition Commission and T.RAD Company Limited. Although T.RAD did not admit liability for contravening section 4(1)(b) of the Competition Act, the Commission accepted this position due to the insignificant effects of T.RAD's conduct in South Africa. The agreement included T.RAD's undertaking to pay an administrative penalty of R500,000, implement and monitor a competition law compliance programme, and refrain from future contraventions. The Tribunal found that the consent agreement resolved all issues arising from the Commission's investigation and was appropriate for confirmation as an order.

Citation
[2020] ZACT 69
Parties
Applicant: Competition Commission; Respondent: T.RAD Company Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
21 September 2020
Case Number
CO112Sep20
Procedural Posture
Consent Order / Confirmation of Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance undertakings accepted.
Judges
Tembinkosi Bonakele
Legal Topics
Cartel Conduct, Price Fixing, Market Division, Collusive Tendering, Administrative Penalty, Consent Agreement
Competition Law Cartel Conduct Price Fixing Market Division Collusive Tendering Administrative Penalty Consent Agreement

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 1 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Competition Commission

Applicant

T.RAD Company Limited

Respondent

Procedural Posture

Consent Order / Confirmation of Consent Agreement

Legal Issues

  1. 1 Whether T.RAD Company Limited and Denso engaged in cartel conduct in contravention of section 4(1)(b) of the Competition Act.
  2. 2 Whether the effects of T.RAD's conduct in South Africa warranted an admission of liability and administrative penalty.
  3. 3 Whether the consent agreement should be confirmed as an order of the Tribunal.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and T.RAD Company Limited. Although T.RAD did not admit liability for contravening section 4(1)(b) of the Competition Act, the Commission accepted this position due to the insignificant effects of T.RAD's conduct in South Africa. The agreement included T.RAD's undertaking to pay an administrative penalty of R500,000, implement and monitor a competition law compliance programme, and refrain from future contraventions. The Tribunal found that the consent agreement resolved all issues arising from the Commission's investigation and was appropriate for confirmation as an order.

Court Disposition

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

Orders

  • T.RAD Company Limited shall pay an administrative penalty of R500,000 to the Competition Commission within 30 days of confirmation of the consent agreement.
  • T.RAD shall prepare and circulate a statement summarizing the consent agreement to its employees, managers, and directors within 14 days of confirmation.