Competition Commission v Tubular Technical Construction (Pty) Ltd (017046) [2013] ZACT 72 (22 July 2013)

Competition Commission v Tubular Technical Construction (Pty) Ltd (017046) [2013] ZACT 72 (22 July 2013)

The Tribunal found that Tubular Technical Construction (Pty) Ltd admitted to engaging in collusive tendering, specifically cover pricing, in relation to the relocation of the in-pit crusher for Sishen Mine. This conduct constituted a contravention of section 4(1)(b)(iii) of the Competition Act, 1998. Tubular provided full and expeditious cooperation to the Commission, ceased all prohibited practices, and undertook to implement a compliance programme. The Tribunal accepted the terms of the consent agreement, including the administrative penalty of R2,634,667, and confirmed the agreement as an order. The Tribunal held that the settlement was in the interest of transparency, efficiency, and...

Citation
[2013] ZACT 72
Parties
Applicant: Competition Commission; Respondent: Tubular Technical Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017046
Procedural Posture
Application for Confirmation of Consent Agreement / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Tubular Technical Construction (Pty) Ltd is liable to pay an administrative penalty.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Consent Agreement, Cover Pricing
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Consent Agreement Cover Pricing

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Parties

Competition Commission

Applicant

Tubular Technical Construction (Pty) Ltd

Respondent

Procedural Posture

Application for Confirmation of Consent Agreement / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Tubular Technical Construction (Pty) Ltd engaged in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act, 1998.
  2. 2 Whether the consent agreement between the Competition Commission and Tubular should be confirmed as an order of the Tribunal.
  3. 3 Whether Tubular is liable to pay an administrative penalty for the admitted contravention.

Ratio Decidendi

The Tribunal found that Tubular Technical Construction (Pty) Ltd admitted to engaging in collusive tendering, specifically cover pricing, in relation to the relocation of the in-pit crusher for Sishen Mine. This conduct constituted a contravention of section 4(1)(b)(iii) of the Competition Act, 1998. Tubular provided full and expeditious cooperation to the Commission, ceased all prohibited practices, and undertook to implement a compliance programme. The Tribunal accepted the terms of the consent agreement, including the administrative penalty of R2,634,667, and confirmed the agreement as an order. The Tribunal held that the settlement was in the interest of transparency, efficiency, and...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Tubular Technical Construction (Pty) Ltd is liable to pay an administrative penalty.

Orders

  • The consent agreement between the Competition Commission and Tubular Technical Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • Tubular Technical Construction (Pty) Ltd shall pay an administrative penalty of R2,634,667 to the Competition Commission in three instalments as specified in the agreement.