Competition Act, 1998 (Act No. 89 of 1998)NoticesGuidelines for the Determination of Administrative Penalties for Prohibited Practices5. Methodology for the calculation of penaltiesStep 3: Duration of the Contravention |
| 5.14 | Once the Commission has established an appropriate base amount, it will take into account the duration of the firm's participation in the contravention. In doing so, the Commission will multiply the base amount by the number of years of participation in the contravention. |
| 5.15 | If the contravention existed prior to the Competition Act, the duration will begin from 1 September 1999, which is the date of the commencement of the Competition Act. |
| 5.16 | For contraventions lasting less than 1 year, the Commission will apply a duration multiplier equal to the proportion of the year over which the contravention lasted. For example, if the contravention lasted for 8 months, the Commission will apply a duration multiplier of 8/128. |
| 5.17 | For contraventions relating to section 4(1)(b)(iii) of the Act, i.e. collusive tendering, the Commission will use the number of years for which the contract lasts, as the multiplier9. In cases |
| 8 | In Commission v DPI Plastics & Others, the Tribunal applied a 7/12 duration multiplier on MacNeil's for its 7 month participation in the contravention |
| 9 | Videx Wire Products (Pty) Ltd v Competition Commission of South Africa Case No.: 124/CAC/OCT12 |
| 10 | Compensation payments occur where two or more bidders each prepare and submit their own bids on condition that the winning party will pay the losing party an agreed sum of money. See decision of the Office of Fair Trading, No. CA98/02/2009: Bid rigging in the construction industry in England 21 September 2009 (Case CE/4327-04) |
| 11 | See decision of the Office of Fair Trading, No. CA98/02/2009: Bid rigging in the construction industry in England 21 September 2009 (Case CE/4327-04) |