7 Sep 2010
ERJ staff report (DS)
Pretoria -- South Africa's Competition Commission has referred a complaint of collusive tendering, price fixing, information exchange and market allocation against the South African Tyre Manufacturers Conference (Pty) Ltd and four tyre manufactures to the Competition Tribunal for adjudication.
The four named manufacturers are Apollo Tyres South Africa (Pty) Ltd, Goodyear South Africa (Pty) Ltd, Continental Tyre South Africa (Pty) Ltd and Bridgestone South Africa (Pty) Ltd. Each could be fined by 10 percent of total turnover.
The investigation also found that importers of tyre products namely Yokohama Southern Africa (Pty) Ltd and Michelin Tyre Company South Africa (Pty) Ltd were not involved in the cartel conduct.
Bridgestone applied for and was granted conditional immunity from prosecution in terms of the Commission's Corporate Leniency Policy (CLP). Two years ago Bridgestone suffered serious damage to its reputation and the CEO publicly committed to thorough investigation of price-fixing and inappropriate payments following the Marine Hose scandal which broke in May 2007.
In its application for leniency, Bridgestone admitted that it held phone calls and met with its competitors during the period 1999 to 2007 to agree in principle that they should cooperate to ensure stability in the market. The meetings, which were attended by the tyre manufacturers' sales and marketing representatives, co-ordinated the timing and the average percentage price increase of tyres, agreed on the discount structure to be given to tyre dealers and messages to be given to the market explaining the increases.
The cartel concerned the manufacture and supply of passenger tyres, light truck/commercial tyres, trucks and bus tyres, off the road tyres, agricultural tyres and earthmover tyres in South Africa.
The Commission's investigation found that the SATMC was used as a platform for what has been termed “coffee table discussions†to determine price increases and general coordination in the market amongst the tyre manufacturers.
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Press release from Competition Commission
Tyre manufacturers finally brought to book
Business Day (South Africa)
Apollo Tyres faces fine for price fixing in S. Africa
The Hindu Business Line (India / South Africa)
Bridgestone seeks leniency in tyre price collusion probe
Business Day (South Africa)
Tyre cartel bursts as commission pounces
Business Report (South Africa)
MoneyWeb (South Africa)
South African body accuses Apollo Tyres of cartelisation
Live Mint (India / South Africa)
Tyre companies accused of price-fixing
Eye Witness news (South Africa)
Bridgestone Admits to Price-Fixing in South African Tire Market
SFGate (South Africa / San Francisco)
Times Live (South Africa)
Bridgestone, others in tyre cartel
Times of India (South Africa / India)
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