Tribunal confirms Cape Gate settlement agreement
in long steel cartel case
 

The Competition Tribunal (“Tribunal”) has approved, as an order, a settlement agreement whereby Cape Gate (Pty) Ltd (“Cape Gate”) agrees to pay a R1.3m administrative penalty for alleged anticompetitive practices in the market for the production of long steel products in South Africa.
 
The agreement settles the dispute between the Competition Commission (“the Commission”) and Cape Gate in terms of which the Commission alleges that Cape Gate contravened the provisions of section 4(1)(b)(i) and (ii) of the Competition Act (“the Act”) by fixing the price, trading conditions and dividing the market for long steel products.
 
In terms of the agreement, Cape Gate agrees to a full and final settlement of the Commission’s referral by effecting payment of an administrative penalty in the sum of R1 375 344.32. However, Cape Gate does not admit to a contravention of the Act in respect of the conduct alleged by the Commission.
 
Among others, Cape Gate also undertakes to refrain from engaging in any anti-competitive conduct in contravention of the Act in the future; and to develop, implement and monitor a competition law compliance programme as part of its corporate governance policy.
 
The settlement agreement is available on the Tribunal’s website at: https://www.comptrib.co.za/case-detail/20367
 
Background
 
This matter (“the long steel complaint”) was initiated by the Commissioner against producers of long and flat steel products in South Africa, for possible contraventions of the Competition Act, in 2008.  
 
In September 2009, the Commission referred the long steel complaint to the Tribunal, alleging that firms had been involved in price fixing, the fixing of trading conditions and the division of markets. Cape Gate opposed the Commission’s complaint referral against it and Cape Gate and the Commission have subsequently concluded a settlement agreement.