Competition Commission v Transfreight International CC (019877) [2014] ZACT 95 (12 November 2014)

Competition Commission v Transfreight International CC (019877) [2014] ZACT 95 (12 November 2014)

The Tribunal confirmed the consent agreement between the Competition Commission and Transfreight International CC as an order. Transfreight admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering through the submission of cover prices in the furniture removal services market. The Tribunal found that the administrative penalty of R607,492.27, representing 7% of Transfreight's annual turnover for the financial year ended February 2013, was appropriate and in accordance with the Act. The order includes undertakings by Transfreight to cooperate with the Commission, implement a compliance programme, refrain from future contraventions, and pay the...

Citation
[2014] ZACT 95
Parties
Applicant: Competition Commission; Respondent: Transfreight International CC
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
12 November 2014
Case Number
019877
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; matter settled in full and final resolution.
Judges
N Manoim, M Mazwai, A Wessels
Legal Topics
Collusive Tendering, Administrative Penalty, Section 4 1 B Iii, Consent Agreement, Corporate Leniency Policy
Competition Law Commercial and Corporate Collusive Tendering Administrative Penalty Section 4 1 B Iii Consent Agreement Corporate Leniency Policy

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Parties

Competition Commission

Applicant

Transfreight International CC

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Transfreight International CC contravened section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering.
  2. 2 Whether the consent agreement between the Competition Commission and Transfreight International CC should be confirmed as an order of the Tribunal.
  3. 3 Whether the administrative penalty imposed is appropriate under the Competition Act.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Transfreight International CC as an order. Transfreight admitted to contravening section 4(1)(b)(iii) of the Competition Act by engaging in collusive tendering through the submission of cover prices in the furniture removal services market. The Tribunal found that the administrative penalty of R607,492.27, representing 7% of Transfreight's annual turnover for the financial year ended February 2013, was appropriate and in accordance with the Act. The order includes undertakings by Transfreight to cooperate with the Commission, implement a compliance programme, refrain from future contraventions, and pay the...

Court Disposition

Consent agreement confirmed as an order of the Tribunal; administrative penalty imposed; matter settled in full and final resolution.

Orders

  • The consent agreement between the Competition Commission and Transfreight International CC is confirmed as an order of the Tribunal.
  • Transfreight International CC shall pay an administrative penalty of R607,492.27 to the Competition Commission in four equal quarterly instalments over 12 months.