A firm involved in the provision of plant and equipment to the construction industry has agreed to pay a R480 000 administrative penalty, in settlement of a cartel case in which it is accused of price fixing and/or fixing trading conditions in contravention of section 4(1)(b)(i) of the Competition Act (“the Act”).

The administrative penalty forms part of the terms of a settlement agreement which has been confirmed as an order by the Competition Tribunal (“Tribunal”). Hard Hat Equipment Hire (Pty) Ltd (“Hard Hat”) further agrees to, among others:

  • refrain from contravening section 4(1)(b) of the Act and from engaging in any prohibited practice in the future; and
  • prepare and circulate a statement summarising the contents of the settlement agreement to its employees, managers and directors.

The full terms of the settlement agreement can be accessed at https://www.comptrib.co.za/case-detail/20728

Background

This matter has its genesis in a Commission investigation into allegations that the CPHA and its members (including Hard Hat) had agreed and/or engaged in a concerted practice to fix prices and/or trading conditions when renting out plant hire equipment. In the settlement agreement, the Commission alleges that CPHA and its members: (i) fixed the minimum hourly, daily, weekly, weekend and monthly rental rates charged when renting out plant hire equipment; and (ii) also agreed to fix the trading conditions for the rental of plant hire equipment such as minimum number of days for hire.

There are a total of 54 respondents in this matter, including Hard Hat and CPHA. Hard Hat is the first respondent to settle with the Commission which says the case against the other 53 respondents is still pending.

Issued by:

Gillian de Gouveia, Communications Manager

On behalf of the Competition Tribunal of South Africa

Cell: +27 (0) 82 410 1195

E-Mail: GillianD@comptrib.co.za

Twitter: @comptrib

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