Statistics Act, 1999
R 385
Competition Act, 1998 (Act No. 89 of 1998)NoticesGuidelines for the Determination of Administrative Penalties for Prohibited Practices5. 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 5: Aggravating and mitigating factors
Step 6: Consideration of the Statutory Limit
