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Tribunal dismisses tyre manufacturers’ complaint

6th June 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

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The Competition Tribunal has dismissed applications sought by local tyre manufacturers Goodyear South Africa and Continental Tyre South Africa to order a portion of the Competition Commission's complaint referral be set aside in a price-fixing complaint.

In 2010, the commission referred a complaint to the tribunal against four tyre manufacturers, including Apollo Tyres South Africa and Bridgestone South Africa, as well as industry association, the South African Tyre Manufacturers Conference (SATMC).

The commission’s referral alleged Continental and Goodyear were involved in the fixing of prices of passenger, light truck, bus, offroad, agricultural and earthmoving tyres between 1999 and 2007 after a complaint was lodged to the commission in October 2006, by Parsons Transport.

It is alleged that the companies agreed to fix prices through the SATMC.

Since the commission's referral in 2010, various interlocutory applications have taken place, which have resulted in Goodyear, Continental and SATMC only filing their answering affidavits to the main matter in 2016, respectively.

In its application, Continental had questioned whether complainant Parsons Transport had validly authorised all the extensions received by the commission during its investigation. Continental argued that not all the extension agreements were duly signed by the complainant – some were signed by the complainant's legal representative, while others were signed by the complainant's financial manager.

The tribunal found that the Competition Act does not stipulate that an agreement to extend should be reduced to writing and that it has become a practice by the commission that it requests extensions from complainants by first obtaining these verbally and then submitting them in writing.

It could be the case that the signed document would be sent back by the complainant after the date on which the agreement was obtained rather than the date on which the agreement had been obtained.

Goodyear and Continental had also alleged that the referral against them was lodged out of time, having been filed after the 15:30 time-period (stipulated in the tribunal rules) at 16:50, and should be rejected.

The tribunal held that a reading of the rules shows, among other things, that the registrar can accept documents within or outside office hours of the tribunal, at his or her discretion, as well as at the direction of the tribunal or member of the tribunal assigned by its chairperson.

The tribunal will on June 13 hear discovery applications from Continental and Goodyear seeking, yet again, documents from the commission. A new timetable is also to be agreed on for when the main matter will be heard.

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Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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