WesBank, Toyota Financial Services charged with collusion

18th February 2022

By: Irma Venter

Creamer Media Senior Deputy Editor

     

Font size: - +

The Competition Commission has referred FirstRand Bank (FirstRand), as well as motor-vehicle finance institutions WesBank (a division of FirstRand) and Toyota Financial Services South Africa (TFS), to the Competition Tribunal for prosecution on collusion charges.

The commission alleges that WesBank and TFS entered into an agreement to divide markets by allocating customers or suppliers for the provision of vehicle finance, in contravention of the amended Section 4(1)(b)(ii) of the Competition Act 89 of 1998.

The motor-vehicle finance market includes vehicle finance, leases and dealership financing.

WesBank and TFS are supposed to compete, states the Competition Commission.

“They have, however, concluded a shareholder agreement which contains clauses that prevent them from competing.”

FirstRand, TSA Investment Holdings and Toyota Motor Finance (UK) have a 33.3% share each in TSA. According to the Competition Commission, these parties concluded a shareholder agreement with clauses that prohibit WesBank from offering vehicle finance to customers seeking to buy vehicles at authorised Toyota dealerships.

“Furthermore, the agreement identifies the vehicles that WesBank is prohibited from financing, and these are new Toyota, Lexus and Hino vehicles and any used vehicles sold through any authorised Toyota dealership, except the McCarthy Group.”

The Competition Commission says “this type of collusive conduct is harmful to consumers, as it deprives them of the benefits which arise from competition. Such agreements are inherently inimical to competition, and the commission has asked the tribunal to fine the companies 10% of their turnover”.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION