DISTANCING ONESELF FROM A CARTEL: VIDEX WIRE PRODUCTS (PTY) LTD V COMPETITION COMMISSION OF SOUTH AFRICA

Thursday, April 10, 2014
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The Competition Appeal Court (the “CAC”) recently handed down judgment in Videx Wire Products (Pty) Ltd v Competition Commission of South Africa.1 The CAC found that Videx Wire Products (Pty) Ltd was party to an overarching cartel agreement pursuant to which it had participated in four separate incidents of prohibited conduct. Further, the effect of the overarching cartel agreement was to prevent the separate incidents of prohibited conduct from becoming time-barred in terms of section 67(1) of the Competition Act.2 In considering whether the cartel conduct had ceased, the CAC held that prior illicit collusive arrangements that continue to have anti-competitive effects give rise to an ongoing duty to speak or act in order for a firm to sufficiently distance itself from the cartel.

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