Omnia Fertilizer Ltd v Competition Commission; Competition Commission of South Africa v Sasol Chemical Industries (Pty) Ltd and Others (31/CR/May05) [2008] ZACT 45; [2008] 2 CPLR 337 (CT) (20 June 2008)

55 Reportability
Competition Law

Brief Summary

Competition Law — Costs — Application for wasted costs by Omnia Fertilizer Ltd against the Competition Commission following the withdrawal of a consolidation application — Omnia argued that the Commission's late withdrawal caused unnecessary costs and effort — The Tribunal dismissed the application for costs, holding that it lacked jurisdiction to award costs against the Commission, which acted in good faith and in the public interest.

COMPETITION TRIBUNAL OF SOUTH AFRICA
    Case No.: 31/CR/May05
In the matter between:
OMNIA FERTILIZER LTD Applicant
And
THE COMPETITION COMMISSION Respondent
In re:
CASE NO: 31/CR/MAY05 AND CASE NO: 45/CR/MAY06
THE COMPETITION COMMISSION OF SOUTH AFRICA Applicant 
And
SASOL CHEMICAL INDUSTRIES (PTY) LTD   First Respondent
YARA (SOUTH AFRICA) (PTY) LTD Second Respondent
OMNIA FERTILIZER LTD Third Respondent
AFRICAN EXPLOSIVES AND CHEMICAL INDUSTRIES LTD   Fourth Respondent
NUTRI­FLO CC  First Intervening Party
NUTRI­FERTILIZER CC  Second Intervening Party
Panel : D Lewis (Presiding Member), Y Carrim (Tribunal 
Member), and U Bhoola (Tribunal Member)
Heard on : 14 February 2008
Decided on : 07 March 2008
Reasons Issued : 20 June 2008
REASONS: OMNIA COSTS APPLICATION
1. On 13  February 2008, Omnia Fertilizer Limited (“Omnia”)  applied for wasted costs to be  
awarded against the Competition Commission in respect of a consolidation application filed  
1

and subsequently withdrawn by the Commission.  On 7 March 2008 the Tribunal dismissed  
the application.  These are the reasons for that decision.
Background to the application
2. Omnia,   together   with   Sasol   Chemical   Industries,   Yara   and   AECI,   is   a   respondent   in   a  
complaint that has been referred to the Tribunal by the Commission on 04 May 2004.  The  
complaint was brought against the respondents by Nutri­Flo CC and essentially concerns  
allegations of contraventions of sections 4(1)(b),  4(1)(a), 8(c) and 8(d)(ii) of the Competition  
Act.   We refer to this complaint as the Nutri­Flo complaint. 1     Nutri­Flo had been granted  
leave to intervene in the proceedings before the Tribunal.   At more or less the same time  
the Commission had referred a second complaint, referred to as the Profert complaint, 2 to  
the Tribunal.  The respondents in the Profert complaint are Sasol, Kynoch (Yara) and AECI.  
3. Pleadings in the Profert complaint had closed by the end of August 2006 and the matter was  
set down for 3­17 March 2008.  On 5 October 2007 the Commission filed an application to  
consolidate the Profert and Nutri­Flo Complaints.  Pleadings in the Nutri­Flo complaint had  
not yet closed.  The basis of the consolidation application is not relevant for purposes of our  
discussion save to say that it was opposed by Sasol and Omnia on a number of grounds.  
The Commission attempted to obtain a hearing for the application during late 2007 but was  
unsuccessful  in this due to the  unavailability  of the respondents  and the Tribunal.      The  
matter was set down for hearing together with a number of other interlocutory matters on 14  
February   2008.     On   13   February   2008   the   Commission   withdrew   its   application   for  
consolidation.     The   Commission   explained   that   it   had   done   so   after   the   Commissioner  
realized that a consolidation of the two complaints at this late stage of the Profert timetable

could result in a postponement of the Profert matter.  The Commission had attempted to set  
the application down earlier in order to avoid this outcome but had not been successful.  In  
order to avoid the Profert matter being postponed it had withdrawn the application. 
4. At   the   hearing,   Omnia   sought   costs   against   the   Commission   arising   from   the   unilateral  
withdrawal of the consolidation application by the Commission.   The Commission opposed  
1 31/CR/May05.
2 45/CR/May06. Referred to as the Profert complaint because the complainant in this
matter was Profert (Pty) Ltd.
2

this   application   but   requested   further   time   to   submit   comprehensive   submissions.     After  
having   heard   Omnia,   the   Tribunal   permitted   both   the   Commission   and   Omnia   to   submit  
written   submissions,   which   were   received   on   21   February   2008   and   27   February   2008  
respectively. 
Summary of the submissions
5. Omnia   argued   that   the   Commission   in   launching   the   consolidation   application   and  
withdrawing it at such a late stage had put the respondents to great cost and effort which  
had been wasted.  On the basis of the practice followed in the High Court, the Commission  
ought to pay the wasted costs of the respondents.   The Commission was also well aware  
that   a   successful   consolidation   application   could   lead   to   a   postponement   of   the   Profert  
matter because pleadings in the Nutri­Flo complaint had not yet closed.   Nevertheless the  
Commission persisted in bringing the application. The Commission had acted in a cavalier  
and reckless manner.   Furthermore, Omnia had elected to oppose the application for good  
reasons.  In its view a consolidation of the two complaints would have caused prejudice to it  
because   it   was   not   a   respondent   in   the  Profert   matter  and   would   have   had   to   bear   the  
inconvenience and costs of participating  in aspects of a trial that were not relevant to it.  
Accordingly it sought costs against the Commission such costs to include the costs of two  
counsel.
6. The  Commission  argued  that  the  Tribunal   was  jurisdictionally  barred  from granting  costs  
against   the   Commission.     Even   if   the   Tribunal   was   empowered   to   do   so,   policy  
considerations required that a prosecutor acting in the public interest should not be mulcted  
with costs.  In any event this was not an appropriate case for an award of costs against the  
Commission since it had not acted maliciously or recklessly in the circumstances

Commission since it had not acted maliciously or recklessly in the circumstances 
7. In response Omnia submitted that having regard to the language of section 57 read together  
with the rules, the Tribunal was not jurisdictionally barred from awarding costs against the  
Commission.     Moreover   South   African   jurisprudence   suggested   that   costs   were   usually  
awarded   against   the   State   and   regulators.     The   Competition   Appeal   Court   had   in   fact  
awarded costs against the Commission in several matters. 3    
3 See Sappi   Fine   Paper   (Pty)Ltd   v   The   Competition   Commission   of   South   Africa   and   Another   [   Case   No.  
23/CAC/Sep02];   Association   of   Shipping   Lines   v   The   Competition   Commission   of   South   Africa   [Case   No  
3

Position in South African law
8. Before considering the central issue of whether or not we are empowered to grant costs  
against the Commission we consider the applicable principles in South African law. 
9. The general principle in South African civil law is that the State or the government can be  
held liable for the costs of litigation in which it is engaged. 4  
10.The   High   Court   and   Supreme  Court   of   Appeal   have  awarded   costs  against   the  State  in  
proceedings in which applicants have sought a review of or appeal against a decision of a  
government   department   or   functionary,   where   litigants   have   sought   to   exercise   their  
constitutional rights or have sought damages from the State. 5  
11.In relation to public officers and quasi­judicial bodies or regulators, the general rule is that a  
court will make no order as to costs if that entity was unsuccessful in its opposition but acted  
bona fide .6  In  Fleming v Fleming 7  the Appellate Division confirmed the rule established in  
Coetzeestroom and held that the costs should not be awarded against a public officer who  
carried out his official duties mistakenly,  but in good faith.   In   Attorney­General,  Eastern  
Cape   v   Blom 8  the   court   expressed   the   view,   in   obiter,   that   that   this   rule   should   not   be  
elevated   to   a   rigid   rule   which   would   fetter   judicial   discretion.     Nevertheless,   courts   are  
reluctant to award costs against prosecutors or entities which are akin to a prosecutor. 9  In  
Nortje v Attorney General, Cape and Another ,10  a full bench of the Court expressed the  
view that prima facie it is undesirable to inhibit attorneys­general, and those delegated by  
them to prosecute, in the bona fide performance of their constitutional duty by the “ spectre 
of   costs   being   ordered   against   the   state   when   prosecutions   fail,   appeals   succeed   or

22/CAC/Sep02]  and  The Competition Commission v Unilever PLC and Others  [ Case No 13/CAC/Jan02].
4 A C Cilliers Law of Costs  Butterworths (3ed), Chapter 10 and the cases cited at 10­4.
5 Cilliers supra. See also in general Hangklip   Environmental   Action   Group   v   MEC   For   Agriculture,  
Environmental Affairs and Development Planning, Western Cape, And Others   2007 (6) SA 65 (C) ,  Chairpersons’ 
Association v Minister of Arts & Culture and Others   2007 (5) SA 236 (SCA),   Mc Donald   & Others v Minister of  
Minerals & Energy & Others  2007 (5) SA 642 (C),  Tantoush v Refugee Appeal Board & Others  2008 (1) SA 232(T).
6 See Coetzeestroom  Estate & GM Co v Registrar of Deeds  1902 TS 216.  See also Winsen et al  The  Civil Practice  
of the Supreme Court of South Africa 4ed Juta,  1997  at 723 and the discussion in Cilliers above at para 10.06.  
7 Fleming v Fleming  1989 (2) SA 253 (A).
8 1988 (4) SA 645 (A).
9 See Winsen et al at 725.
10 1995 (2) SA 460 (C).
4

applications   they   resist   are   granted ”   (Our   emphasis).     In   the   case   of   an   interlocutory  
application there is even less reason to consider granting a costs order against an attorney­
general.11 
12.Costs   are   always   awarded   at   the   discretion   of   the   judicial   officer.   In   Blom,   the   court  
confirmed a costs order granted by the trial court against the Attorney­General on the basis  
that was an exercise of judicial discretion and a court of Appeal will not readily interfere with  
the exercise of that discretion.  
13.In   summary,   costs   can   be   awarded   against   the   State   in   administrative,   constitutional   or  
delictual cases.   In cases involving statutory bodies or public officers, courts will not easily  
award costs if the public officer acted, mistakenly, but in good faith.  However this rule is not  
to   be   elevated   to   a   rigid   rule   where   judicial   discretion   is   fettered.     Courts   however   are  
reluctant to award costs against a prosecutor or an entity akin to a prosecutor acting in good  
faith.     In the case of an interlocutory application a court would be even more reluctant to  
award  costs  against   an  attorney­general.      The   award  of   costs is  always  an  exercise  of  
judicial discretion, even if it is done in terms of the provisions of a statute. 12  
14.In proceedings of a  criminal  nature, the basic principle  is that in the absence of specific  
statutory authority a court has no power to order the state represented by the prosecuting  
authority to pay costs where an accused has been acquitted or the accused to pay costs  
where he or she has been convicted.  13    Hence in criminal trials each party bears its own  
costs.     The   principle   at   the   level   of   appeal   however   is   different.       A   court   is   expressly  
empowered by sections 310A and 311 of the Criminal Procedure Act, 51 of 1977 to award

empowered by sections 310A and 311 of the Criminal Procedure Act, 51 of 1977 to award  
costs against or in favour of the Attorney General in who seeks to apply for leave to appeal  
against a decision of a lower court or in the appeal itself. 
15.In the event that costs are awarded, the general rule is that costs follow the suit and are  
awarded on a party­party scale. 14
11 At 485 E-F.
12 See Hangklip page 86.
13 See Cilliers above at page 12-15.
14 Cilliers supra.
5

English law
16.The position in English law is similar.  In  Baxendale­Walker   v Law Society , the court held  
that 
16.1. “The principles in relation to an award of costs against a disciplinary body were  
not in dispute.  A regulator brings proceedings in the public interest in the exercise of a  
public  function  which   it  is  required   to  perform.   In those  circumstances  the  principles  
applicable   to an  award  of  costs differ  from  those in  relation  to  private  civil  litigation.  
Absent dishonesty or a lack of good faith, a costs order should not be made against  
such a regulator unless there is good reason to do so.  That reason must be more than  
that the other party has succeeded.  In considering an award of costs against a public  
regulator   the   court   must   consider   on   the   one   hand   the   financial   prejudice   to   the  
particular   complainant,   weighed   against   the   need   to   encourage   public   bodies   to  
exercise their public function of making reasonable and sound decisions without fear of  
exposure to undue financial prejudice, if the decision is successfully challenged.” 15
17.The   Court   in   Baxendale   was   relying   upon   the   seminal   decision   of   the   City   of   Bradford  
Metropolitan District Council v Booth .16  In  City of Bradford the Court  outlined the approach  
to be taken when deciding to award costs against regulators  and states that ­ 
“26. Where a complainant has successfully challenged before justices an
administrative decision made by a police or regulatory authority acting
honestly, reasonably, properly and on grounds that reasonably appeared to
be sound, in exercise of its public duty, the court should consider, in addition
to any other relevant fact or circumstances, both (i) the financial prejudice to
the particular complainant in the particular circumstances if an order for
costs is not made in his favour; and (ii) the need to encourage public authorities to

costs is not made in his favour; and (ii) the need to encourage public authorities to  
make and stand by honest, reasonable and apparently sound administrative decisions  
made in the public interest without fear of exposure to undue financial prejudice if the  
decision is successfully challenged .”17 (Our emphasis)
15 2006 EWHC643 at paragraph 43.
16 [2000] COD 338.
17 At para 26.
6

18. We turn now to consider the scheme set out in the Competition Act.
Jurisdictional Bar
19. Before considering the relevant provisions of the Competition Act it would be instructive to  
highlight the context in which the competition agencies exercise their functions.    
20.While   the   Competition   Tribunal’s   functions   are   adjudicative   in   nature,   its   powers   are  
expressly provided for in the Competition Act.     The Tribunal,  unlike the High Court, is a  
creature of statute and does not enjoy inherent jurisdiction.   When the Tribunal is asked to  
grant a particular order it must first look to see whether it enjoys such powers expressly or  
by necessary implication in the four corners of the Act. 18   Hence before the Tribunal can  
make an award of costs, its power to do so must be found in the Act.  
21.The   Commission   is   also   a   creature   of   statute   whose   functions   are   to   promote   the  
objectives of the Act and to ensure compliance with the provisions of the Act. 19   It has  
both   investigative   and   prosecutorial   powers.       The   Commission’s   merger   regulation  
functions   are   divided   into   two.     In   relation   to   intermediate   mergers   the   Commission  
investigates and makes a decision on the merits of the merger.   Such decision can be  
taken on appeal by the merging parties to the Competition Tribunal. 20   In relation to large  
mergers the Commission investigates and arrives at a recommendation which is referred  
to the Tribunal for a decision. 21   In relation to anti­competitive conduct, the Commission  
is tasked with the investigation thereof.  Once it determines that a prohibited practice has  
taken place, it refers this to the Tribunal for a decision. When it prosecutes alleged anti­
competitive   conduct   before   the   Tribunal,   the   Commission   is   akin   to   a   prosecutor   in   a  
criminal trial. 22 
22. The Tribunal and the Commission are collectively responsible for the

22. The Tribunal and the Commission are collectively responsible for the
regulation of competition in the South African economy.
18 See Devenish Interpretation of Statutes   Juta 1992(Cite) and   Moodley v Minister of Education and culture,  
House of Delegates  1989 (3) SA 221 (A).
19 See sections 19- 25 of the Act.
20 Section 14.
21 Section 14A.
22 See Simelane  and Others NNO v Seven –Eleven Corporation SA (Pty) Ltd and Another  [2001­2002] CPLR 13  
(SCA).
7

23.The Competition Appeal Court, while established in terms of section 36 of the Act as a  
specialist court, enjoys a status similar to that of a High Court. The Competition Appeal  
Court can review any decision of the Tribunal and consider appeals arising from decisions  
of the Tribunal. 23   Unlike the Tribunal however, the Court enjoys inherent jurisdiction and,  
in addition to those set out in the Act, enjoys the powers of a High Court.   
24.This distinction between the Tribunal, as a creature of statute, and the Competition Appeal  
Court, as a High Court can also be found in those provisions of the Act that deal with the  
orders  the  two  bodies  can  make.    Section  37(2) provides  that   the  Competition  Appeal  
Court   may   give   any   judgment   or   make   any   order,   including   an   order   dealing   with   a  
decision of the Tribunal or remitting a matter to the Tribunal for further hearing. 24   By  
contrast, the Tribunal is restricted to the powers and remedies provided for  in terms of this  
Act.25  It cannot make  any order, it can only make such orders as it empowered to make  
by the provisions of the Act. The Act sets out the Tribunal’s functions and powers in great  
detail in sections 58, 59 and 60.  26   
25. Such an approach can be found within section 58 itself which sets out the orders that the  
Tribunal is empowered to make.   An initial reading of section 58 might suggest that the  
Tribunal enjoys the same latitude as the Appeal Court.   Section 58 provides – 
25.1 “In addition to its other powers in terms of this Act, the Competition Tribunal may –
make an appropriate order in relation to  a prohibited practice , including…” 
26.The   words       “In   addition   to   its  other   powers….the   Tribunal   may  make   an   appropriate  
order”  could   suggest   that   the   Tribunal   has   a   wide   discretion   to   make   any   appropriate  
order.     However   a   closer   reading   shows   that   that   latitude   applies   only   to   prohibited

practices.   27     This limiting or restrictive approach is reinforced in the subsequent sub­
sections where the legislature enumerates the kinds of remedies it envisaged in section  
58(1). 
23 See section 37.
24 See section 37(2).
25 See section 27(1) and section 58.
26 See sections 27(1), 58, 59 and 60. See also our decision in Case No 45/CR/May06.
27 See s57 (1) (a).
8

27. Hence, our approach to whether or not the Tribunal is empowered to make an award of  
costs in the circumstances of this case must be guided by two central principles, namely  
that the Tribunal is a creature of statute and does not enjoy the inherent jurisdiction of a  
High Court and second that the legislature has sought to circumscribe the powers of the  
Tribunal to only those that it has set out in the Act.  
Scheme under the Act
28. We turn to consider the provisions of the Act that deal with the issue of costs. 
29. The Tribunal’s power to award costs is regulated by the provisions of section 57 which  
provides – 
“57. Costs
(1) Subject to subsection (2), and the Competition Tribunal's rules of procedure, each  
party participating in a hearing must bear its own costs.
(2) If the Competition Tribunal – 
(a) has not made a finding against a  respondent, the Tribunal member presiding  
at a hearing may award costs to the  respondent, and against a  complainant 
who referred the complaint in terms of section 51(1); or
(b) has made a finding against a  respondent, the Tribunal member presiding at a  
hearing may award costs against the  respondent, and to a  complainant who  
referred the complaint in terms of section 51(1).”
30. A textual analysis of section 57 provides us with the following regime.  The general principle  
is   that   in   proceedings   before   the   Tribunal,   each   party   must   bear   its   own   costs   (section  
57(1)).   In terms of this section the Tribunal is not empowered to award costs against the  
Commission or any other party appearing before it.     This general rule is qualified by two  
limitations namely section 57(2) and the “Tribunal’s rules of procedure”.
31. Section 57(2) contemplates that the Tribunal may award costs against parties
appearing before it. This is essentially the first qualification to the general rule
that each party must bear its own costs. However section 57(2) has two further

that each party must bear its own costs. However section 57(2) has two further
internal qualifications, the effect of which is to exclude the Commission from the
operation of s57 (2) altogether. Section 57(2) permits the Tribunal to award
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costs but only in circumstances as between a complainant and a respondent and
only where the complainant and the respondent are the parties to a complaint
that has been referred to the Tribunal in terms of section s51(1).
32.Respondent is defined in section 1(xxix) of the Act as  a  firm against whom a complaint of a  
prohibited practice  has been initiated in terms of  this Act.    In terms of section 49B of the Act  
a complaint can be initiated by a complainant under s49B (2) (b) or the Commission in terms  
of s49B (1).  While the word complaint is not defined in the Act, the word “complainant” used  
in section 57(2) is and means a person who has submitted a complaint in terms of section  
49B(2)(b).   A complainant in 49B (2) is not the Commission.   A referral in terms of section  
51(1) is a referral to the Tribunal by a complainant (which does not include the Commission)  
after the Commission has issued or deemed to have issued a notice of non­referral.  28 Such  
a prosecution is akin to a private prosecution in civil law.  It is the complainant, acting in its  
own interests and not the Commission acting in the public interest, who brings the matter  
before the Tribunal.  
33. These then are the only circumstances in which the Tribunal is permitted by the
Competition Act to make an award of costs, namely where a complainant has
referred the matter to the Tribunal in terms of section 51(1) and the proceedings
of which are akin to a private prosecution. The Tribunal is accordingly
jurisdictionally barred from awarding costs against the Commission and any
other party appearing before it in any other circumstances.
34.Omnia   argues   that   the   Tribunal   is   empowered   to   make   an   award   of   costs   against   the  
Commission   on   the  basis   of   the   second   qualification   contained   in   section   57(1),   namely  
“subject to the Competition Tribunal’s rules of procedure”.  It argues that the words “subject

to the rules” render the statutory provisions subordinate to the rules and we must look to the  
Tribunal’s   rules   to   see   what   the   actual   position   is   in   relation   to   costs   against   the  
Commission.   In drafting section 57(1) in the way that it did, Parliament was granting the  
Tribunal the power, through its rules, to expand the scope of section 57.   Since rule 50(3)  
contemplates   that   an   award   of   costs   can   be   made   against   a   party   withdrawing   an  
application29 and rule 58(1) provides that the Tribunal may make any order for costs under  
28 See the provisions of section 51(1) of the Act.
29 See rule 50(3).
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Part 4, 30  this allows the Tribunal to make an award of costs against the Commission for  
withdrawing   the   consolidation   application.     Omnia   argues   further   that   this   Tribunal   has  
contemplated   that   it   enjoyed   the   jurisdiction   to   award   costs   against   the   Commission,   as  
expressed in  SAA  Amendment  decision31 and has in fact awarded costs against a party in  
Paarl Post Web Printers (Pty)Ltd v CTP Holdings Ltd and Another. 32
35.Omnia’s approach to the interpretation of section 57 is novel indeed and if taken to its logical  
conclusion   will   undermine   the   fundamental   tenet   of   our   legal   system   namely   that   of   the  
separation of powers.  It is trite law that rules or regulations (in which rules are promulgated)  
are subordinate to the statute they are made in terms of and cannot be interpreted to extend  
the powers granted in a statute.  33    
36.In  Moodley  v Minister of Education and Culture, House of Delegates 1989 (3) SA 221 (A)  
the Court sets out the proper approach to this issue: 
36.1. “It is not permissible to treat the Act and the regulations made thereunder as a  
single  piece of  legislation  and to use  the  latter as an aid to  the  interpretation of  the  
former.”  34 
37.Regulations, which are promulgated by the Minister and not drafted by Parliament, cannot  
be treated as an aid to interpretation of the Act, and cannot be used to enlarge the meaning  
of the provisions of the Act. 35  The fundamental principle ignored by Omnia, when it tenders  
its argument, is that Parliament, cannot delegate its own law making function.  At best it can  
clothe – through its law making function ­ a statutory body or a minister with duties and  
functions.     In doing this it must itself adhere to the principle of the separation of powers  
provided for in the Constitution.  Parliament, even if it had sought to do as Omnia suggests,

provided for in the Constitution.  Parliament, even if it had sought to do as Omnia suggests,  
cannot   permit   the   meaning   and   scope   of   a   statute   to   be   enlarged   upon   by   rules   and  
30 See rule 58(1). Part 4 includes rules 14 to 43. The Commission’s application was
brought under rule 42.
31 The Competition Commission v South African Airways (Pty) Ltd [Case No. 18/CR/Mar01] Amendment Decision.
32 Case No. 47/IR/A/Jun00.
33 See Devenish Interpretation of Statutes  Juta 1992. 
34 See Moodley at 233 D­F.
35 See Moodley at 233.
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regulations promulgated by the executive.  36  
38.While   rules   50(3)   and   57(1)   cannot   be   used   to   interpret   the   ambit   of   section   57,   the  
converse is possible.  When we look at  rules 50(3) and 57(1) we consider these through the  
lens of  section 57(1) and (2). Rule 50(3) and 57(1) apply only in the event that the Tribunal  
exercises   its   discretion   in   terms   of   section   57(2).   Moreover,   the   words   “subject   to   the  
Tribunal’s rules of procedure”, read in their context seem to place further limitations, albeit of  
a procedural nature, on the Tribunal’s power to award costs.    
39.In conclusion, the effect of section 57, read with the rules of the Tribunal, is to effectively bar  
this   Tribunal   from   awarding   costs   against   the   Commission   or   any   other   party   appearing  
before it except in the context of a section 51(1) referral.   When the Tribunal exercises its  
discretion in that context, it must do so in accordance with its own rules of procedure.  The  
section   cannot   be   interpreted   to   mean   otherwise.     Nor   can   the   words   “subject   to   the  
Tribunal’s procedures” – which clearly place a  procedural  limitation on the Tribunal’s power  
to award costs – be interpreted to expand the  substantive powers of the Tribunal.  37  
40.It   is   of   course   entirely   possible   that   costs,   in   principle,   can   be   awarded   against   the  
Commission   by   the   Competition   Appeal   Court.     The   Court   after   all   enjoys   inherent  
jurisdiction.   The scheme under the Act in fact combines elements of both the South African  
criminal   and  civil   law  framework  by  requiring   each  party  to bear  its  own  costs as  a  first  
principle (criminal trial), permitting cost awards in proceedings akin to private prosecutions  
(referrals in terms of section 51(1)) and permitting costs against the Commission at the level

of   appeal.     The   policy   considerations   underpinning   the   scheme   are   self­evident.     The  
Commission,   as  regulator  and  prosecutor,   is  not   discouraged   from  discharging   its  duties  
under   the   Competition   Act   by   the   spectre   of   costs   being   awarded   against   it.     Nor   is   a  
respondent  discouraged   from   mounting   a   comprehensive   defence   against   the   charges  
leveled against it by the spectre of costs being awarded against it in the event that it is found  
guilty.   It   is   this   scheme   that   Omnia   has   failed   to   appreciate.     If   we   found   that   the  
Commission could be mulcted with costs, then by necessary implication, we would need to  
36 See in Devenish Interpretation of Statutes  Juta 1992 page 113 paragraph 8.
37 See also the approach of the court in CAC Anglo judgment: Anglo South Africa Capital (Pty) Ltd  
and others v Industrial Development Corporation South Africa [2003] 1 CPLR 10 (CAC).
12

find that a respondent in the position of Omnia could also be mulcted with costs.   This is  
clearly not what was intended by section 57(1). 
41.However, if the Commission seeks to challenge a decision of the Tribunal, its exuberance is  
clipped   by   the   spectre   of   a   costs   award   against   it   if   it   loses   at   that   level.     Hence   it   is  
cautioned to properly consider its prospects of success before embarking on a course of  
appeal or review. 38  
42.This   leaves   us   to   deal   with   Omnia’s   contention   that   this   Tribunal   has   previously  
contemplated that it was empowered to grant costs against the Commission and that it had  
granted costs against a party in  Paarl Post Web Printers (Pty) Ltd v CTP Holdings Ltd and  
Another. We do not have any insights into what was argued before the Tribunal in that case  
or what factors it had regard to, but that case is clearly distinguishable from this one.  In the  
Paarl   case   the   complainant   had  sought   interim  relief   from  the   Tribunal   in   relation   to  the  
conduct of the respondent in terms of section 49C.  Interim relief applications are analogous  
to interim interdict proceedings in the High Court.  Such an application is available only to a  
complainant, as defined in the Act, 39  usually in circumstances of urgency and in order to  
prevent irreparable damage to it while the Commission is still in the process of investigating  
a complaint.   The Commission is not a party to such proceedings and the section is not  
available   to   it.       The   parties   in   an   interim   relied   application   are   none   other   than   a  
complainant and a respondent, the same parties that would appear before the Tribunal if the  
complainant had sought final relief from the Tribunal in terms of section 51(1).  
43. We share the concerns expressed by the Tribunal in the SAA case.  However, our

43. We share the concerns expressed by the Tribunal in the SAA case.  However, our  
inability   to   award   costs   against   the   Commission   can   hardly   be   seen   to   provide   the  
Commission   with   encouragement  to   conduct   itself   in   a   reckless   manner.     Section   57(1)  
applies   to   both  the   Commission   and   a  respondent.     Each   party   contemplated   in   section  
57(1)  enjoys  the  benefit   of   conducting  its  case  before us  without  being   restricted  by  the  
spectre of an adverse costs order from this Tribunal.     However, our finding in this matter  
should not be interpreted to mean that the Commission, or any other party for that matter,  
has carte blanche in proceedings before this Tribunal.  The Tribunal has a wide discretion in  
38 This would apply to a respondent as well.
39 See the provisions of section 49C and definition of complainant.
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the conduct of its proceedings and has available to it any number of remedies through which  
it can communicate its displeasure with the conduct of the Commission or any other party, if  
so warranted.  
44. The application is accordingly dismissed.
______________________ 20 June 2008
Y Carrim                      Date
Presiding Member 
Concurring: D Lewis and U Bhoola
Tribunal Researcher : J Ngobeni
For Omnia :   Adv   Owen   Rogers   SC   with   Adv   Paul   Farlam   (Instructed   by   Webber  
Wentzel Bowens)
For the Commission : Adv MSM Brassey SC with Adv O Mooki (Instructed by Cheadle  
Thompson & Haysom Inc)
14