Competition Commission tyre price fixing hearing underway in South Africa

The South African Competition Commission tyre price fixing hearing got underway in South Africa on 28 January 2022. The Competition Commission names Apollo Tyres South Africa (Pty) Ltd; Goodyear South Africa (Pty) Ltd; Continental Tyres South Africa (Pty) Ltd; Bridgestone South Africa (Pty) Ltd; and South African Tyre Manufacturers Conference (Pty) Ltd its case and alleges that from around 1999-2007, the respondents “discussed and agreed to fix the prices of passenger, light truck, bus, off-the-road, agricultural and earthmover tyres”. This was allegedly done through the SATMC, an association for tyre manufacturers in South Africa. The respondents were members of the SATMC.

The matter emanates from a price fixing complaint lodged by Parsons Transport (Pty) Ltd with the Commission. Following an investigation, the Commission concluded that the tyre manufacturers’ conduct contravened section 4(1)(b)(i) of the Competition Act i.e. price fixing.

Subsequently, Bridgestone applied for and was granted conditional immunity from prosecution in terms of the Commission’s Corporate Leniency Policy. Apollo settled with the Commission in December 2011 and paid an administrative penalty of R45 000 000.

Now, more than 10 years after that, the Commission is “seeking relief against the remaining respondents for alleged price fixing and is asking that administrative penalties be imposed against them”. The respondents deny the commission’s claims.