The Competition Commission has referred a complaint about alleged price fixing against two companies operating in the automotive glass sector to the Competition Tribunal for prosecution.
The Competition Commission said in a statement on Thursday that the watchdog had referred complaints against PG Glass (Pty) Ltd and Glasfit (Pty) Ltd to the tribunal.
“The respondents are suppliers of laminated and toughened automotive glass in South Africa and compete in the market for the distribution and fitment of automotive glass. They are alleged to have entered into an agreement and or engaged in a concerted practice to fix prices of automotive glass products they supplied to end user customers and insurance companies in South Africa,” the Competition Commission said.
The watchdog said the alleged conduct constituted price fixing, which contravenes section 4(1)(b)(i) of the Competition Act 89 of 1998.
“The conduct is alleged to have started in 2004 and remains ongoing. The Commission’s investigation found that the respondents have a longstanding agreement to increase the price of automotive glass they supply to customers with the same percentage point annually,” it said.
Competition Commissioner Doris Tshepe said automotive glass formed part of industrial intermediary products, a priority sector for the commission.
“Dismantling of the alleged cartel will contribute towards fairer pricing of automotive glass for the benefit of consumers as well as insurance companies,” said Tshepe.
The commission said it was seeking an order from the tribunal declaring that the companies had contravened the law and were liable for the payment of an administrative penalty equal to 10% of their respective turnover in terms of the Act.
PG Glass and Glasfit had not responded to requests for comment at the time of publication.
