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Bloemfontein - The Competition Commission's corporate leniency policy is a useful tool in the fight against anti-competitive behaviour, the Supreme Court of Appeal (SCA) found on Thursday.
The court was delivering judgement in a case involving the validity of the policy, which is an element in the commission's fight against cartel behaviour.
The case arose from a referral to the Competition Tribunal of an alleged cartel in the wire products industry.
Consolidated Wire Industries reported to the commission the existence of an alleged cartel in the wire industry and obtained conditional immunity under the policy.
Agri Wire, one of the parties to the alleged cartel, challenged the referral to the tribunal on the grounds that the policy, in its present form, was not sanctioned by the Competition Act.
Agri Wire argued in court that the evidence obtained from Consolidated Wire had been unlawfully obtained and that the referral to the tribunal was accordingly irregular and should be set aside.
The SCA rejected an argument that the commission's corporate leniency policy was unlawful.
It found that one of the functions of the commission was to promote transparency in markets and that the investigation and termination of cartels enhanced transparency.
The judgement held the commission was obliged to investigate all anti-competitive behaviour identified in the Competition Act, and that the policy was a useful tool in this process.
The SCA concluded that the granting of conditional immunity to Consolidated Wire was lawful, as was the referral to the Competition Tribunal.
Agri Wire's appeal was dismissed.
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The court was delivering judgement in a case involving the validity of the policy, which is an element in the commission's fight against cartel behaviour.
The case arose from a referral to the Competition Tribunal of an alleged cartel in the wire products industry.
Consolidated Wire Industries reported to the commission the existence of an alleged cartel in the wire industry and obtained conditional immunity under the policy.
Agri Wire, one of the parties to the alleged cartel, challenged the referral to the tribunal on the grounds that the policy, in its present form, was not sanctioned by the Competition Act.
Agri Wire argued in court that the evidence obtained from Consolidated Wire had been unlawfully obtained and that the referral to the tribunal was accordingly irregular and should be set aside.
The SCA rejected an argument that the commission's corporate leniency policy was unlawful.
It found that one of the functions of the commission was to promote transparency in markets and that the investigation and termination of cartels enhanced transparency.
The judgement held the commission was obliged to investigate all anti-competitive behaviour identified in the Competition Act, and that the policy was a useful tool in this process.
The SCA concluded that the granting of conditional immunity to Consolidated Wire was lawful, as was the referral to the Competition Tribunal.
Agri Wire's appeal was dismissed.
*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.
