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Competition Act, 1998 (Act No. 89 of 1998)

Notices

Guidelines for the Determination of Administrative Penalties for Prohibited Practices

5. Methodology for the calculation of penalties

 

5.1 As a general approach, the Commission will apply the Tribunal's six-step methodology when determining the administrative penalty that a firm will be liable to pay for contravening the relevant sections of the Act, namely:
5.1.1 Step 1: Determination of the affected turnover in the base year;
5.1.2 Step 2: Calculation of the base amount being that proportion of the affected turnover relied upon;
5.1.3 Step 3: Multiplying the amount obtained in step 2 by the duration of the contravention;
5.1.4 Step 4: Rounding off the figure obtained in step 3 if it exceeds the cap provided for by section 59(2) of the Act;
5.1.5 Step 5: Considering factors that might mitigate and/or aggravate the amount reached in step 4, by way of a discount or premium expressed as a percentage of that amount that is either subtracted from or added to it; and
5.1.6 Step 6: Rounding off this amount if it exceeds the cap provided for in section 59(2) of the Act.

 

5.2 Where appropriate, the amount calculated in terms of the above methodology may be further adjusted:
5.2.1 By application of settlement discount(s); and
5.2.2 In exceptional circumstances, the inability to pay as provided under paragraph 7 (seven) below.

 

Step 1: Determination of Affected Turnover

Step 2: Calculation of the Base Amount

Step 3: Duration of the Contravention

Step 4: Statutory Limit

Step 5: Aggravating and mitigating factors

Step 6: Consideration of the Statutory Limit

 

 


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