Concrete Pipes Cartel Case Study

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I.INTRODUCTION: With specific focus on the longest running cartel in South Africa, we will be analysing how it was created and disintegrated. II. CARTELS: It is important to acknowledge the fact that cartels are not specifically defined within the Competition Act (hereafter referred to as the Act). However, we tend to focus on Section 4(1)(b) of the Act in identifying common prohibited behaviour that is essentially displayed by cartels- namely collusive tendering, price fixing and market allocation. Thus, a cartel may be defined as any horizontal agreement or concerted practice where there is a meeting of the minds to have some type of effect on a market. III. CONCRETE PIPES CARTEL: In 1973 the Concrete Pipes Cartel was brought into existence.…show more content…
Subsequently, Rocla was granted conditional leniency in December 2007. Accordingly, Rocla was to provide the Commission with information which implicated itself and its competitors in price fixing, market allocation and collusive tendering within the market for pre-cast concrete products in return for immunity from prosecution. VIII. PENALTIES: Each member was faced with different consequences for participating in the cartel, these will be discussed below. Rocla, as discussed above was granted conditional leniency as such they were guaranteed with civil immunity. Aveng, entered into a settlement agreement with the Competition Tribunal where they agreed to pay an administrative penalty of R46 277 000, 8% of their financial turnover in 2008 and to institute a compliance programme. Southern Pipeline Contractors (SPC), the Commission imposed the maximum penalty of 10% for their total turnover which came to R16800000. Conrite Walls, the Commission imposed a penalty of 8% for their total turnover which came to R6100000. Cobro, entered into a consent order agreement with the Competition Tribunal where they admitted that they took part in the cartel and agreed to pay a penalty of R4 022 568.29, 6.5% of their financial turnover in

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