Competition Commission v Vlaming (Pty) Ltd (017053) [2013] ZACT 73 (22 July 2013)

Competition Commission v Vlaming (Pty) Ltd (017053) [2013] ZACT 73 (22 July 2013)

The Tribunal found that Vlaming (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act in relation to three construction projects. The respondent provided cover prices and agreed to pay 'losers' fees to competitors, distorting the competitive process. Vlaming cooperated fully with the Commission, disclosed all relevant information, and undertook to cease prohibited practices and implement a compliance programme. The Tribunal accepted the consent agreement, including the administrative penalty of R3,421,662, as a full and final settlement of the disclosed conduct. The agreement was confirmed as an order of the Tribunal,...

Citation
[2013] ZACT 73
Parties
Applicant: Competition Commission; Respondent: Vlaming (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017053
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Vlaming (Pty) Ltd in respect of the disclosed conduct are concluded.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Corporate Leniency Policy, Settlement Agreement
Competition Law Collusive Tendering Bid Rigging Administrative Penalty Corporate Leniency Policy Settlement Agreement

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Parties

Competition Commission

Applicant

Vlaming (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Vlaming (Pty) Ltd 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 Vlaming (Pty) Ltd should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contraventions.

Ratio Decidendi

The Tribunal found that Vlaming (Pty) Ltd admitted to engaging in collusive tendering in contravention of section 4(1)(b)(iii) of the Competition Act in relation to three construction projects. The respondent provided cover prices and agreed to pay 'losers' fees to competitors, distorting the competitive process. Vlaming cooperated fully with the Commission, disclosed all relevant information, and undertook to cease prohibited practices and implement a compliance programme. The Tribunal accepted the consent agreement, including the administrative penalty of R3,421,662, as a full and final settlement of the disclosed conduct. The agreement was confirmed as an order of the Tribunal,...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed. Proceedings between the Commission and Vlaming (Pty) Ltd in respect of the disclosed conduct are concluded.

Orders

  • The consent agreement between the Competition Commission and Vlaming (Pty) Ltd is confirmed as an order of the Tribunal.
  • Vlaming (Pty) Ltd shall pay an administrative penalty of R3,421,662 to the Competition Commission within 30 days of confirmation of the order.