Nutri-Flo CC submitted a complaint to the Competition Commission in 2003 against Sasol Chemical Industries Ltd, alleging that Sasol imposed price increases on raw materials (LAN and ANS) to such an extent as to render Nutri-Flo's operations unviable. The complaint form (CC1) named only Sasol as respondent and alleged contraventions of sections 8 and 9 of the Competition Act (abuse of dominance). An accompanying affidavit mentioned Yara (then Kynoch) and Omnia (through its subsidiary Nitrochem) in three paragraphs, stating they were part of a "cartel" controlling prices of imported fertilizers (KCL and Urea), but expressly stated no relief was sought against them. The Commission investigated and in May 2005 referred the complaint to the Competition Tribunal, alleging contraventions of sections 4(1)(b) (cartel conduct), 8, and 9 against all three respondents. After Sasol settled with the Commission in May 2009, admitting to price-fixing with Yara and Omnia, the Commission sought to amend the referral to incorporate detailed allegations of meetings and pricing agreements between 2001-2006 based on the settlement admissions. Yara and Omnia opposed the amendment and Omnia counter-applied for dismissal of the complaint against them.
The appeal was upheld with costs. The order of the Competition Tribunal was set aside and replaced with an order dismissing the application for amendment with costs and declaring that no complaint is pending against Yara and Omnia in the matter.
The binding principle is that the Competition Commission may only refer to the Competition Tribunal such complaints and particulars thereof as were actually submitted by a complainant under section 49B(2)(b) of the Competition Act. Information submitted to the Commission under section 49B(2)(a) does not constitute a complaint and cannot be converted into one through the referral or amendment process where the submitting party did not signal an intention to be a complainant in respect of that conduct. Where the Commission obtains information about other prohibited conduct or other parties during an investigation, it must initiate its own complaint under section 49B(1) rather than purporting to add such matters to an existing private complaint. The Commission cannot expand the scope of a private complaint beyond what was specifically contemplated by the complainant as evidenced by the CC1 form and accompanying statements. An amendment that seeks to introduce allegations of prohibited conduct by parties against whom no complaint was made constitutes an impermissible introduction of a new cause of action.
The Court suggested (without definitively deciding) that the allegations relating to cartel activity in the Nutri-Flo affidavit may have been made for the purpose of demonstrating the level of dominance enjoyed by Sasol and the limitations on Nutri-Flo's ability to avoid or limit the effect of price increases, rather than as a separate complaint. The Court also noted that while complaints need not be drafted with precision or reference specific sections of the Act, there must be a rational or recognizable link between the conduct complained of and prohibitions in the Act. The Court confirmed that delay in bringing an amendment is not, in itself and absent prejudice, a ground for refusing amendment. The Court also observed that the convenience of incorporating fresh causes of action in original proceedings is recognized in civil procedure, provided no uncompensable prejudice results, but this principle has limits in the competition law context given the statutory framework for initiating complaints.
This case establishes important principles regarding the scope and nature of complaints in competition proceedings: (1) It distinguishes between submitting a formal 'complaint' under the Competition Act (which must be in prescribed form and identify specific prohibited conduct by specific parties) and merely submitting 'information' to the Commission; (2) It confirms that the Commission cannot expand a private complainant's complaint beyond what was actually complained of, even through amendment; (3) It establishes that where the Commission receives information about prohibited conduct during an investigation, it must initiate its own complaint rather than attempt to incorporate that conduct into an existing private complaint; (4) It emphasizes substance over form but requires clear intention to complain against specific parties; (5) It limits the Commission's power under section 50(3) to refer only particulars 'as submitted by the complainant'; (6) It provides important guidance on when amendments introducing new causes of action will be permissible in competition proceedings. The judgment protects parties from being drawn into proceedings where no proper complaint was made against them.