Competition Act, 1998 (Act No. 89 of 1998)NoticesGuidelines for the Determination of Administrative Penalties for Prohibited Practices4. Legislative framework |
| 4.1 | These guidelines have been prepared in terms of section 79(1) of the Act which allows the Commission to prepare guidelines to indicate its policy approach on any matter falling within its jurisdiction in terms of the Act. These guidelines are aimed at providing guidance in terms of section 79(2)(b) of the Act and are not binding on the Commission, the Tribunal or the CAC in the exercise of their respective discretion, or their interpretation of the Act. |
| 4.2 | The Commission is not the final arbiter of administrative penalties, nor is it the final arbiter of consent orders or settlement agreements. Rather, the decisions taken by the Commission in terms of administrative penalties are subject to the approval of the Tribunal and oversight by the courts through appeals and/or review. |
| 4.3 | In terms of section 58(1)(a)(iii) and (b) of the Act, read together with section 59, the Tribunal may impose an administrative penalty for a prohibited practice in contravention of sections 4(1)(b), 5(2), 8(a), (b),(d) of the Act. The Tribunal may also impose an administrative penalty for a prohibited practice in contravention of sections 4(1)(a), 5(1), 8(c) or 9(1) of the Act if the conduct is substantially a repeat by the same firm of conduct previously found by the Tribunal to be a prohibited practice. |
| 4.4 | Pursuant to sections 49D and 58(1)(b) of the Act, the Commission and the respondent may reach an agreement on the terms of an appropriate order, which may be confirmed by the Tribunal. The terms of such order may include an agreement on the payment of an appropriate administrative penalty. |
| 4.5 | Pursuant to section 27 of the Act, the Tribunal may adjudicate on any prohibited conduct and upon making a determination, may impose an administrative penalty as a remedy provided for in the Act. |