Global spark plug maker, local unit face prosecution for collusion
The Competition Commission has filed a referral with the Competition Tribunal for prosecution against NGK Spark Plug (NGK) and its local subsidiary, NGK Spark Plugs South Africa (NGK SA), for their involvement in price fixing, market division and collusive tendering.
The commission says it is seeking an order from the tribunal to levy an administrative penalty equivalent to 10% of the yearly turnover of either NGK or NGK SA, “the one paying the other to be absolved, in terms of Section 58 (1)(a)(iii), read with Section 59 of the [Competition] Act”.
NGK is a global manufacturer and supplier of spark plugs to vehicle manufacturers.
The commission says it scrutinised NGK and NGK SA operations as part of its investigation of 63 automotive components manufacturers alleged to have colluded in 310 separate instances involving 92 automotive components.
The probe against NGK found that, from at least 2008, NGK colluded with autocomponents manufacturer Denso when responding to a request for quotation issued by Fuji Heavy Industries for spark plugs for the AR18 engine installed in its Subaru Impreza, Subaru Forrester and Subaru Legacy vehicles sold in South Africa.
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