Many directors and managers of companies still associate
prohibited anti-competitive conduct with dishonest intentions and
smoke-filled rooms. In reality, however, anti-competitive conduct
which contravenes the Competition Act, 89 of 1998 ("the
Competition Act") and results in the imposition of significant
penalties, is often the result of an isolated incident in the
greater market within which a business operates.
This fact was highlighted on the 10th of October 2012 when the
Competition Tribunal confirmed a settlement agreement between the
Competition Commission and Pentel South Africa (Pty) Ltd
("Pentel").
In terms of the agreement, Pentel agreed to pay an
administrative penalty to the sum of R2 840 451 (being 3.41% of
Pentel's total turnover in the 2011 financial year) for its
contravention of section 5(2) of the Competition Act. For ease of
reference we refer to the matter as the "Pentel
Case".
