Portfolio Committee on Trade and Industry

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Portfolio Committee on Trade and Industry

• 06 October 2009

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Mr Norman ManoimChairperson Competition
Tribunal

• Tel [phone]
• Fax [phone]
• Email normanm_at_comptrib.co.za

Mrs Lerato MotaungRegistrar Competition
Tribunal
Tel [phone] Fax [phone] Email
leratom_at_comptrib.co.za
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What we do

• Independent, specialised institution established
  by statute (Competition Act 89 of 1998)
• Regulates corporate mergers and adjudicates
  allegations of anti-competitive practices

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Merger regulation

• In respect of mergers, the Tribunal
• Authorises or prohibits large mergers and
• Adjudicates appeals from the Commissions
  decisions regarding intermediate mergers

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Restrictive Practices

• In respect of anti-competitive behaviour, the
  Tribunal
• Adjudicates complaint referrals,
• Adjudicates interim relief applications, and
• Adjudicates appeals from the Competition
  Commissions decisions regarding applications for
  exemptions

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Tribunal Cases
Type of case Number heard Reasons issued
Large merger 102 97
Procedural 23 10
Intermediate merger 2 2
Complaint referral from the Commission - Consent orders - Opposed referrals 9 3 1 1
Complaint referral from a complainant 1 0
Interim relief 0 0
Total heard 140 111
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Large Merger Trends
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Tribunal hearing days for cases taking more than
one day
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Important new decisions

• Recognising margin squeeze as form of abuse of
  dominance (Senwes case)
• Defining rights to intervene in mergers
• (Altech case)
• Validity of summons issued by the Commission
• (Woodlands case)
• Validity of complaint referrals
• (Clover et al)

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Highlights

• 140 cases heard
• 111 reasons issued
• 79.41 of hearings in large merger cases took
  place within 10 days of receipt of case
• 100 of decisions in large merger cases released
  within 10 days of hearing
• 126.5 days in hearings
• 375 media reports in sources monitored by the
  Tribunal

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Highlights cont..

• Administrative penalties imposed exceeded R 303
  million

Lancewood Cheese (Pty) Ltd R100 thousand
Thusanong Healthcare (Pty) Ltd R287 thousand
Dismed Criticare (Pty) Ltd R1,2 million
American Natural Soda Ash R9 million
Foodcorp (Pty) Ltd R45 million
Aveng (Africa) Ltd R46 million
Adcock Ingram Critical Care (Pty) Ltd, Tiger Brands Ltd R53 million
New Reclamation Group (Pty) Ltd R145 million
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Participation in international bodies

• Chairperson appointed as chairman of the steering
  group of the International Competition Network
  (ICN)
• Continued active participation in the Competition
  Committee of Organisation for Economic
  Co-operation and Development (OECD)

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Financial Management
Category Amount R million 2009 2008 2007
Government grants 9.91 48.10 44.54 47.73
Filing fees 8.82 42.82 47.70 48.62
Other income 1.87 9.08 7.76 3.66
Total income 20.6 100 100 100
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Financial Management cont
Expenditure Category 2009 2008 change
Personnel 53.40 50.19 21.33
Administration 17.99 17.07 20.20
Training 7.42 9.30 -8.93
Professional services 18.99 21.86 -0.93
Other operating expenses 2.20 1.58 57.80
Total expenditure 100 100 14.04
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Tribunal Members until July 2009

• David Lewis
• Marumo Moerane Deputy Chairperson
• Norman Manoim
• Yasmin Carrim
• Urmila Bhoola
• Merle Holden
• Mbuyiseli Madlanga
• Thandi Orleyn
• Medi Mokuena
• Lawrence Reyburn
• Nicola Theron

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Tribunal Members from August 2009

• Norman Manoim - Chairperson
• Mbuyiseli Madlanga Deputy Chairperson
• Yasmin Carrim
• Andreas Wessels
• Andiswa Ndoni
• Merle Holden
• Thandi Orleyn
• Medi Mokuena
• Lawrence Reyburn
• Nicola Theron
• Takalani Madima

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Tribunal Staff

• Staff complement of 14 in 3 divisions
• Corporate Services headed by Janeen de Klerk
• Research Division headed by Rietsie Badenhorst
• Registry Division headed by Lerato Motaung