Tribunal confirms Maxiprest penalty
South Africa’s Competition Tribunal has confirmed a 9.356 million rand (£721,712.31, 899,154 euros, US$7,241,070) penalty handed down to Maxiprest Tyres by the Competition Commission for “price fixing, division and allocation of markets and collusive tendering”, according to local news reports.
The Commission launched an investigation into the tyre industry in 2007 after receiving an immunity application from Auto and Truck Tyres (ATT). ATT reportedly alleged that itself, Bridgestone and Maxiprest had been involved in price fixing, division and allocation of markets and collusive tendering during the period 2002 to 2007 and that Bridgestone had engaged in the practice of minimum resale price maintenance during the same period in that it had compelled ATT and Maxiprest to adhere to specific price levels in respect of Bridgestone and Firestone branded tyres.
Financial website Moneyweb said Maxiprest admitted to the conduct and in terms of the settlement agreement, undertook to refrain from engaging in such conduct and to develop a compliance programme to ensure that all relevant employees are aware of the provisions of the Competition Act and do not contravene them.
Maxiprest’s penalty of 9,355,970 rand represents 6.5 per cent of its turnover for the sale of truck and bus radial/truck and bus bias tyres and retreaded tyre sales in Gauteng for the financial year ending 31 December 2010.
According to the reports, Bridgestone has undertaken to supply ATT on the same basis as any other independent dealer, subject to Bridgestone’s reasonable commercial terms and conditions of sale.
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