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Tribunal confirms consent agreement between Commission and
fire sprinkler installer fined R120K for collusive tendering
The Tribunal has confirmed, as an order, a consent agreement between the Commission and Eagle Fire Control CC (Eagle Fire) which admits that it has acted in contravention of section 4(1)(b)(iii) of the Act i.e. collusive tendering.
Eagle Fire has agreed to pay an administrative penalty (a fine) of R120 000 (one hundred and twenty thousand Rand). In terms of the consent agreement it also agrees to, among others:
- refrain from engaging in any anti-competitive conduct in contravention of the Act in future;
- develop, implement and monitor a competition law compliance programme;
- commit itself to competitive practices.
Background
The matter ultimately dates back to July 2017 when the Commission launched an investigation into the Automatic Sprinkler Inspection Bureau (ASIB) and all sprinkler installers registered with the ASIB.
During that investigation, the Commission found information which indicated that Eagle Fire and another firm may have entered into an agreement to collude when submitting bids to their clients.
The Commission subsequently launched a separate investigation and found that Eagle Fire’s conduct with the other firm had amounted to collusive tendering for (i) the supply and installation of fire equipment at Old Mutual properties and (ii) the replacement of sprinkler heads at Tiger Brand buildings.
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