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Over-arching agreements and the duty to disclose cartel involvement – the Videx CAC appeal

Over-arching agreements and the duty to disclose cartel involvement – the Videx CAC appeal

5th May 2014


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In a recent decision, Videx Wire Products (Pty) Ltd v Competition Commission of South Africa, the Competition Appeal Court held that Videx Wire Products (Pty) Ltd was party to an over-arching agreement (pursuant to which it had engaged in four separate incidents of prohibited cartel conduct between 2004 and 2007) and that the effect of such agreement had not yet ceased. The result of this finding was that some of the separate incidents of cartel conduct were not time barred from prosecution in terms of the prescription provisions contained in section 67(1) of the Competition Act. The CAC held that collusive arrangements with continuing prejudicial effects, which had not yet dissipated, could not be considered to have ceased in terms of section 67(1). The CAC also held that firms have an on-going obligation to disclose their prior collusive conduct to the parties that induced to enter into continuing contracts to allow them an opportunity to re-assess their position. A copy of the CAC's decision is available here.



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