The Competition Tribunal has approved, as an order, a consent agreement between the Competition Commission and Faurecia Emissions Control Technologies South Africa, owned by Faurecia, in France.
The agreement relates to an investigation initiated by the commission in 2014 against several vehicle exhaust system manufacturers for alleged price fixing, market division and collusive tendering for the supply of exhaust systems to original equipment manufacturers (vehicle manufacturers) worldwide.
In terms of the consent agreement, Faurecia admits that it engaged in dividing markets and collusive tendering, in contravention of the Competition Act, and agreed to pay an administrative penalty of R66 885.66.
Among others, Faurecia also agreed to cooperate with the commission in its prosecution of the remaining respondent in the commission’s complaint referral.
This cooperation includes, but is not limited to, providing evidence and testifying during the hearing of the complaint referral.
Background
The commission’s investigation found that, around 2003, Eberspächer and Faurecia had an agreement and/or engaged in a concerted practice to divide markets by allocating specific types of goods, and to tender collusively in relation to a tender issued by German car maker Daimler.
The tender was for the manufacture and supply of motor vehicle exhaust systems for the Mercedes Benz C-Class W204 platform.
Daimler required exhaust systems for both petrol and diesel engines, and Eberspächer and Faurecia were invited to submit bids.
They agreed that, in responding to this, Eberspächer would focus only on the petrol portion of Daimler’s request, while Faurecia would focus only on the diesel portion.
Ultimately, Faurecia was awarded the diesel portion and Eberspächer the petrol portion by Daimler.
However, this conduct contravened Section 4(1)(b) (ii) and (iii) of the Competition Act.