The Competition Tribunal has confirmed, as an order, a R480 000 administrative penalty imposed on plant and equipment hire company Hard Hat Equipment Hire as part of a settlement in a case in which it was accused of alleged price fixing and/or fixing trading conditions in contravention of the Competition Act.
The company further agreed, among others, to refrain from contravening the Act and engaging in any prohibited practice in the future and would prepare a statement summarising the contents of the settlement agreement and circulate it to its employees, managers and directors.
The order has its genesis in a Competition Commission investigation into allegations that industry organisation the Contractors Plant Hire Association (CPHA) and its members, including Hard Hat, had allegedly agreed to 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 fixed the minimum hourly, daily, weekly, weekend and monthly rental rates charged when renting out plant hire equipment.
It further alleged that the CPHA had also agreed to fix the trading conditions for the rental of plant hire equipment, such as the minimum number of days for hire.
There are 54 respondents in this matter, including Hard Hat and the CPHA. Hard Hat is the first respondent to settle with the commission. The case against the other 53 respondents is still pending.