The Competition Tribunal at the end of January started online hearings into alleged price fixing in the domestic tyre industry.
The respondents are Apollo Tyres South Africa; Goodyear South Africa; Continental Tyres South Africa; Bridgestone South Africa; and the South African Tyre Manufacturers Conference (SATMC).
The Competition Commission alleges that from about 1999 to 2007, the respondents discussed and agreed to fix the prices of passenger, light-truck, bus, off-road, agricultural and earthmoving tyres.
This was allegedly done through the SATMC, an association for tyre manufacturers in South Africa. The respondents were all members of the SATMC.
The matter before the tribunal emanates from a price-fixing complaint lodged by Parsons Transport with the Competition Commission.
Following an investigation, the commission concluded that the conduct of the tyre manufacturers contravened Section 4(1)(b)(i) of the Competition Act, which deals with price fixing.
Following the commission’s investigation, Bridgestone applied for, and was granted, conditional immunity from prosecution in terms of the commission’s Corporate Leniency Policy.
Apollo, in turn, settled with the commission in December 2011, and paid an administrative penalty of R45-million.
The commission is now seeking relief against the remaining respondents for alleged price fixing, and is asking that administrative penalties also be imposed against them.
The respondents deny the commission’s claim against them.