Competition Commission v Van Heerden Pharmacy and Others (CO011Apr20) [2020] ZACT 98 (6 May 2020)
- Citation
- [2020] ZACT 98
- Status
- Order
- Jurisdiction
- South Africa
- Court
- Competition Tribunal
- Panel
- E Daniels, M Mazwai, T Vilakazi
- Case number
- CO011Apr20
More details
- Court
- Competition Tribunal
- Panel
- E Daniels, M Mazwai, T Vilakazi
- Case number
- CO011Apr20
On this page
Professional case brief
Research organized from the available case record
01
Holding and result
The Tribunal considered the consent agreement entered into between the Competition Commission and Van Heerden Pharmacy Group, including its Rosslyn, Lyttleton, and Phalaborwa branches. The agreement addresses alleged contraventions of the Competition Act relating to market allocation and abuse of dominance. The Tribunal found that the consent agreement was negotiated in good faith, is consistent with the objectives of the Competition Act, and provides an appropriate remedy for the alleged conduct. Accordingly, the Tribunal confirmed the consent agreement and its addendum as binding on the parties.
Court disposition
Consent agreement confirmed by the Tribunal; the matter is resolved in accordance with the terms of the agreement.
Orders
- The consent agreement between the Competition Commission and Van Heerden Pharmacy Group, including Rosslyn, Lyttleton, and Phalaborwa branches, is confirmed as an order of the Tribunal.
- The addendum to the consent agreement is also confirmed.
02
Material facts
Parties
Competition Commission
Applicant Counsel: Bakhe Majenge / Maya Swart / Luke RennieVan Heerden Pharmacy Rosslyn
Respondent Counsel: Jeremy GraçaVan Heerden Pharmacy Lyttleton
Respondent Counsel: Jeremy GraçaVan Heerden Pharmacy Phalaborwa
Respondent Counsel: Jeremy Graça03
Procedural history
Posture
Consent Order / Order Confirming Consent Agreement
04
Questions and positions
Legal issues
- 01
Whether the consent agreement between the Competition Commission and Van Heerden Pharmacy Group should be confirmed by the Tribunal.
- 02
Whether the conduct of the respondents contravened the Competition Act, specifically regarding market allocation and abuse of dominance.
Party arguments
- Applicant
- The Competition Commission submits that the respondents have engaged in conduct that contravenes sections of the Competition Act, particularly relating to market allocation and abuse of dominance. The Commission and the respondents have negotiated a consent agreement to resolve the matter, which is presented for confirmation by the Tribunal.
- Respondent
- The respondents, represented by Kingsbury Graça Attorneys, have agreed to the terms of the consent agreement with the Competition Commission and do not oppose its confirmation. They accept the findings and remedies as set out in the agreement.
05
Court’s reasoning
Legal principles
- 01
Competition Act 89 of 1998
Consent agreements may be confirmed by the Tribunal if they are consistent with the provisions of the Competition Act and serve to resolve disputes efficiently.
- 02
Competition Act 89 of 1998
Market allocation and abuse of dominance are prohibited practices under the Competition Act, and parties found to have engaged in such conduct may be subject to remedial orders.
06
Ratio, limits and disposition
Ratio decidendi
The Tribunal considered the consent agreement entered into between the Competition Commission and Van Heerden Pharmacy Group, including its Rosslyn, Lyttleton, and Phalaborwa branches. The agreement addresses alleged contraventions of the Competition Act relating to market allocation and abuse of dominance. The Tribunal found that the consent agreement was negotiated in good faith, is consistent with the objectives of the Competition Act, and provides an appropriate remedy for the alleged conduct. Accordingly, the Tribunal confirmed the consent agreement and its addendum as binding on the parties.
Obiter and limits
- Consent agreements are an effective mechanism for resolving competition disputes without protracted litigation.
- The Tribunal encourages parties to engage constructively with the Commission to address competition concerns.
Court disposition
Consent agreement confirmed by the Tribunal; the matter is resolved in accordance with the terms of the agreement.
- The consent agreement between the Competition Commission and Van Heerden Pharmacy Group, including Rosslyn, Lyttleton, and Phalaborwa branches, is confirmed as an order of the Tribunal.
- The addendum to the consent agreement is also confirmed.
Source and reliance status
Competition Tribunal
This page organises the available record for research. Confirm quotations, current status, and subsequent treatment against the official source before relying on the case.
Judgment reading view
Judgment text
The complete available source text.
Competition Tribunal
Order
COMPETITION
TRIBUNAL REPUBLIC OF SOUTH AFRICA
Case No: CO011Apr20
In the matter between:
The Competition Commission Applicant
And
Van Heerden Pharmacy First
Respondent
Rosslyn Van Heerden Pharmacy Second
Respondent
Lyttleton Van Heerden Pharmacy Phalaborwa Third Respondent
Panel : E Daniels (Presiding Member), M Mazwai (Tribunal Member),
T Vilakazi (Tribunal Member)
Heard on : 04 May 2020
Decided on : 06 May 2020
CONSENT
AGREEMENT
The Tribunal hereby confirms the consent agreement as agreed to and proposed by the Competition Commission and Van Heerden Pharmacy
Rosslyn; Van Heerden Pharmacy Lyttleton; Van Heerden Pharmacy Phalaborwa annexed hereto marked “A”, as well as an addendum to the consent agreement marked “B”.
Signed by: Enver Daniels
Signed at: 2020-05-06 17:43:50
Reason: Witnessing Enver
Presiding Member Mr Enver Daniels
Concurring: Ms Mondo Mazwai and Dr. Thando Vilakazi
Date: 6 May 2020
IN THE COMPETITION TRIBUNAL OF SOUTH AFRICA (HELD IN PRETORIA)
CT Case No.
CC Case No. 2020AprC0369
COMPETITION
COMMISSION
Applicant
and
VAN
HEERDEN PHARMACY ROSSLYN First Respondent
VAN
HEERDEN PHARMACY LYTTLETON Second Respondent
VAN HEERDEN PHARMACY PHALABORWA Third Respondent
FILING
SHEET
TAKE NOTICE THAT the Applicant files herewith the following documents:
1. Competition Tribunal Form CT 6; and
2. A Confidential Consent Agreement between the Competition Commission and Van Heerden Pharmacy Group.
DATED AT PRETORIA ON THIS 28th DAY OF APRIL 2020.
COMPETITION
COMMISSION
Applicant
77 Meintjies Street
Sunnyside Pretoria
Tel: 012 394 3527
Ref: Bakhe Majenge / Maya Swart /
Luke Rennie E-mail: BakheM@compcom.co.za/
MayaS@compcom.co.za / LukeR@compcom.co.za
TO:
THE REGISTRAR
Competition Tribunal Block C, The dti Campus 77 Meintjies Street Sunnyside
Pretoria
Tel: 012 394 3355
Email: ctsa@comptrib.co.za/ registry@comptrib.co.za
AND TO: Kingsbury Graça Attorneys
C/o
VAN HEERDEN PHARMACY GROUP
1st to 3rd Respondents
85 Newton Road
Meadowdale Gauteng
Tel: 011 974 0429 / 082 332 6613
Email: jeremy@kigr.co.za
Notice of Motion
Date: 28 April 2020
File #
To: The registrar of the Competition Tribunal
Concerning the matter between:
THE
COMPETITION COMMISSION
and
VAN HEERDENS PHRMACY GROUP
(Applicant) (Respondent)
Take notice that the
APPLICANT
intends to apply to the Tribunal for the following order:
Name and Title of person authorised to sign:
Authorised Signature: Date:
This form is prescribed by the Minister of Trade and Industry in terms of section 27 (2) of the Competition Act 1998 (Act No. 89 of 1998).
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