Telecommunications equipment and network solutions provider ZTE Corporation South Africa has agreed to pay a R5-million settlement for allegedly colluding to divide markets.
In terms of a settlement agreement concluded between ZTE Corporation and the Competition Commission, ZTE SA also agreed to refrain from engaging in any prohibited practice or anticompetitive conduct, in contravention of the Competition Act, in future.
The firm also agreed to implement a competition law compliance programme.
Although ZTE SA has agreed to the terms of the settlement agreement, it does not admit liability in respect of the conduct as alleged by the commission.
The commission, in turn, has agreed to enter into the settlement agreement with ZTE SA without an admission of liability, based on various factors, read with the remedies contained in the consent agreement, including that ZTE SA has not previously been found guilty of contravening the Act.
CASE BACKGROUND
In 2013, the commission launched an investigation into ZTE Corporation (China), ZTE Hong Kong, ZTE SA and ZTE Mzansi for allegedly allocating customers in the market for the supply of telecommunications equipment and network solutions in South Africa.
It was alleged that, in 2011, ZTE SA and ZTE Mzansi agreed to divide markets by allocating customers between themselves.
The commission alleged that the parties agreed to divide the market in that ZTE Mzansi would distribute telecommunications equipment and network solutions to public sector customers, while ZTE SA would distribute similar products to private sector customers.