Apollo Tyres South Africa settles price fixing case

South Africa’s Competition Commission has settled its price fixing case with Apollo Tyres South Africa. Under the terms of the deal struck between the tyre maker and the government body, Apollo will pay a 45 million rand (£3.5 million) fine and admit to its prior participation in the tyre manufacturers’ pricing cartel that also allegedly included the South African Tyre Manufacturers Conference (Pty) Ltd (SATMC), Goodyear South Africa, Continental Tyre South Africa and Bridgestone South Africa. The penalty Apollo Tyres South Africa is required to pay represents 4.75 per cent of its total 2008 turnover.

The Competition Commission initiated its case after a fleet owner complained that local tyre manufacturers adjusted their prices at the same time and within the same parameters, and on 4 April 2008 it conducted a search and seizure operation on the premises of Bridgestone, Apollo and the SATMC. Subsequently, Bridgestone applied for and was granted conditional immunity from prosecution. The Commission’s investigation revealed that the cartel operated between 1999 and at least 2007 and involved agreement between the tyre makers on the level, timing and implementation of price increases. The Commission also found that the SATMC was used as a platform to conduct these discussions.

The Competition Commission says it “welcomes” the settlement by Apollo, and notes the new owners who acquired the company in 2006 have cooperated with its investigation. Apollo has, the Commission adds, agreed to refrain from engaging in this type of conduct and to develop and implement a compliance programme to ensure its employees are aware of the provisions of the Competition Act.