TRIBUNAL CONFIRMS CONSENT AGREEMENT WHEREBY INTERNATIONAL SHIPPING COMPANY, ACCUSED OF DIVIDING MARKETS, AGREES TO PAY ADMINISTRATIVE PENALTY
An international shipping company, involved in transporting citrus fruit from South Africa to the United States of America (“USA”) by sea, has agreed to pay an administrative penalty after being accused of dividing markets, in contravention of the Competition Act (“the Act”).
Seatrade Group N.V. and its general agent, Seatrade Reefer Chartering N.V. (together, “Seatrade”), has agreed to pay R373 921.33 (three hundred and seventy-three thousand, nine hundred and twenty-one Rand and thirty-three cents) as part of the terms of a settlement agreement with the Competition Commission (“the Commission”) which has been confirmed as an order of the Tribunal.
Seatrade, however, does not admit liability or wrongfulness but has agreed to conclude the consent agreement in order to bring the matter to a conclusion.
Terms of agreement
In addition to the penalty, Seatrade has also undertaken to:
- refrain from any anti-competitive conduct in contravention of the Act; and
- continue to implement its competition law compliance programme as part of its corporate governance policy. This is designed to ensure that all employees, members and management do not contravene the Act.
Background
In October 2012, the Commission launched an investigation into Capespan Group Limited (“Capespan”) and Seatrade for alleged engagement in market division arrangements, in contravention of section 4(1)(b)(ii) of the Act, in the market for the transportation of citrus fruit from South Africa to the USA by way of sea.
The investigation emanated from information received from Capespan in an application for immunity. It had been alleged that the firms, during or about May 2012, had agreed that Capespan would stop transporting citrus products for the Western Cape Citrus Producers Forum to the USA, to allow Seatrade to do so. Despite this agreement, it was stated during the Tribunal hearing that the agreement was reported to the Commission prior to being implemented.
The Commission concluded that the proposed May 2012 agreement between the firms contravened the Act. Seatrade, however, disputes the conclusion.
Issued by:
Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib
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