Competition Commission v Vrystaat Kooperasie Bpk (43/CR/Jun11) [2011] ZACT 91; [2012] 1 CPLR 121 (CT) (9 November 2011)

Competition Commission v Vrystaat Kooperasie Bpk (43/CR/Jun11) [2011] ZACT 91; [2012] 1 CPLR 121 (CT) (9 November 2011)

The Tribunal confirmed the consent agreement between the Competition Commission and Vrystaat Kooperasie Beperk. VKB admitted to participating in prohibited price fixing of grain storage tariffs as a member of the Grain Silo Industry, in contravention of section 4(1)(b)(i) of the Competition Act. The agreement included payment of an administrative penalty amounting to 4% of VKB's 2009 grain silo storage turnover, undertakings to cooperate with the Commission, refrain from future anti-competitive conduct, and implement a competition law compliance programme. The Tribunal found the terms of the consent agreement to be appropriate and in accordance with the Act, and confirmed it as a final...

Citation
[2011] ZACT 91
Parties
Applicant: Competition Commission; Respondent: Vrystaat Kooperasie Beperk
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
9 November 2011
Case Number
43/CR/Jun11
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as a final order; administrative penalty imposed; proceedings between the Commission and VKB concluded.
Judges
A Wessels, M Mokuena, A Ndoni
Legal Topics
Horizontal Price Fixing, Administrative Penalty, Consent Agreement, Grain Storage Tariffs
Competition Law Commercial and Corporate Horizontal Price Fixing Administrative Penalty Consent Agreement Grain Storage Tariffs

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Parties

Competition Commission

Applicant

Vrystaat Kooperasie Beperk

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether Vrystaat Kooperasie Beperk contravened section 4(1)(b)(i) of the Competition Act by participating in price fixing of grain storage tariffs.
  2. 2 Whether the consent agreement between the Competition Commission and Vrystaat Kooperasie Beperk should be confirmed as an order of the Tribunal.
  3. 3 Whether an administrative penalty is appropriate and properly quantified.

Ratio Decidendi

The Tribunal confirmed the consent agreement between the Competition Commission and Vrystaat Kooperasie Beperk. VKB admitted to participating in prohibited price fixing of grain storage tariffs as a member of the Grain Silo Industry, in contravention of section 4(1)(b)(i) of the Competition Act. The agreement included payment of an administrative penalty amounting to 4% of VKB's 2009 grain silo storage turnover, undertakings to cooperate with the Commission, refrain from future anti-competitive conduct, and implement a competition law compliance programme. The Tribunal found the terms of the consent agreement to be appropriate and in accordance with the Act, and confirmed it as a final...

Court Disposition

Consent agreement confirmed as a final order; administrative penalty imposed; proceedings between the Commission and VKB concluded.

Orders

  • The consent agreement between the Competition Commission and Vrystaat Kooperasie Beperk is confirmed as an order of the Tribunal.
  • Vrystaat Kooperasie Beperk shall pay an administrative penalty of R 1,286,969.22 to the Competition Commission within 10 days of confirmation of this order.