Competition Commission v WBHO Construction (Pty) Ltd (017061) [2013] ZACT 74 (22 July 2013)

Competition Commission v WBHO Construction (Pty) Ltd (017061) [2013] ZACT 74 (22 July 2013)

WBHO Construction (Pty) Ltd admitted to engaging in collusive tendering and other prohibited restrictive horizontal practices in contravention of section 4(1)(b) of the Competition Act, 1998. The Competition Commission and WBHO entered into a consent agreement, in which WBHO undertook to pay an administrative penalty, cooperate fully with the Commission, and implement a compliance programme to prevent future contraventions. The Tribunal, satisfied that the requirements of the Act and the Commission's invitation were met, confirmed the consent agreement as an order. The penalty was calculated based on WBHO's turnover in the relevant subsectors and will be paid in three instalments over two...

Citation
[2013] ZACT 74
Parties
Applicant: Competition Commission; Respondent: WBHO Construction (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
22 July 2013
Case Number
017061
Procedural Posture
Consent Order Application / Order Confirming Consent Agreement
Outcome
Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Collusive Tendering, Bid Rigging, Administrative Penalty, Corporate Leniency Policy, Market Allocation
Competition Law Commercial and Corporate Collusive Tendering Bid Rigging Administrative Penalty Corporate Leniency Policy Market Allocation

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Parties

Competition Commission

Applicant

WBHO Construction (Pty) Ltd

Respondent

Procedural Posture

Consent Order Application / Order Confirming Consent Agreement

Legal Issues

  1. 1 Whether WBHO Construction (Pty) Ltd engaged in collusive tendering and bid-rigging in contravention of section 4(1)(b) of the Competition Act, 1998.
  2. 2 Whether the consent agreement between the Competition Commission and WBHO should be confirmed as an order of the Tribunal.
  3. 3 What administrative penalty is appropriate for the admitted contraventions.

Ratio Decidendi

WBHO Construction (Pty) Ltd admitted to engaging in collusive tendering and other prohibited restrictive horizontal practices in contravention of section 4(1)(b) of the Competition Act, 1998. The Competition Commission and WBHO entered into a consent agreement, in which WBHO undertook to pay an administrative penalty, cooperate fully with the Commission, and implement a compliance programme to prevent future contraventions. The Tribunal, satisfied that the requirements of the Act and the Commission's invitation were met, confirmed the consent agreement as an order. The penalty was calculated based on WBHO's turnover in the relevant subsectors and will be paid in three instalments over two...

Court Disposition

Consent agreement confirmed as an order of the Tribunal. Administrative penalty imposed.

Orders

  • The consent agreement between the Competition Commission and WBHO Construction (Pty) Ltd is confirmed as an order of the Tribunal.
  • WBHO Construction (Pty) Ltd shall pay an administrative penalty of R311,288,311 in three instalments over two years.