The Constitutional Court has delivered a landmark judgment that strengthens the Competition Commission’s ability to pursue international cartel cases.
According to the commission, this provides greater clarity on the reach of South Africa’s competition laws beyond the country’s borders.
The apex court ruled last Tuesday that competition authorities can pursue landmark forex-rigging claims against six international banks, allowing a full hearing on allegations that global lenders colluded to manipulate the value of the South African rand.
The court upheld the commission’s appeal against JP Morgan Chase Bank N.A. and Standard Americas Incorporated and dismissed HSBC Bank plc’s cross-appeal. However, it dismissed the commission’s appeal against nine foreign banks and three South African banks.
Rand manipulation cases
Commissioner Doris Tshepe said the judgment allows the commission to continue prosecuting allegations relating to the manipulation of the ZAR/USD currency pair against six financial institutions.
“The effect of the judgment is that the commission can proceed with the prosecution of the fixing of ZAR/USD currency pair allegations against six banks, namely, BNP Paribas, JP Morgan Chase & Co, JP Morgan Chase Bank N.A., Investec Bank Limited, HSBC Bank plc and Standard Americas Incorporated at the Tribunal,” she said.
Absa, Barclays applied for leniency
The commission said it would continue pursuing the matter with the assistance of Absa and Barclays, which applied for leniency, as well as Citibank and Standard Chartered, which have previously concluded settlement agreements with the competition regulator.
The court also confirmed that the commission may join additional respondents at any stage of proceedings before the Competition Tribunal, a decision expected to provide greater flexibility as investigations evolve and new evidence emerges.
While welcoming the judgment, the commission noted that it disagreed with certain aspects of the court’s reasoning.
Siyabonga Makunga, Competition Commission spokesperson, said the court correctly held that all facts pleaded by the commission should be accepted as true when considering exceptions and objections.
However, he said this principle was not applied consistently in relation to some of the respondents in the foreign exchange cartel case.
The commission further noted that the Constitutional Court did not make a finding on its interpretation of Section 3(1) of the Competition Act. Instead, the court indicated that the issue could be revisited in a future matter raising the same legal question.
- The Constitutional Court has delivered a landmark judgment that strengthens the Competition Commission’s ability to pursue international cartel cases.
- According to the commission, this provides greater clarity on the reach of South Africa’s competition laws beyond the country’s borders.
- The apex court ruled last Tuesday that competition authorities can pursue landmark forex-rigging claims against six international banks, allowing a full hearing on allegations that global lenders colluded to manipulate the value of the South African rand.
- The court upheld the commission’s appeal against JP Morgan Chase Bank N.A.
- and Standard Americas Incorporated and dismissed HSBC Bank plc’s cross-appeal.
