South Africa starts hearing in tire price-fixing case

Pretoria -- South Africa's Competition Commission is holding a series of hearings for a long-running case of price fixing by major tire makers in the country.

According to the Competition Commission’s website, hearing sessions are set to be held throughout the month of February to address allegations of price fixing by Apollo, Bridgestone, Continental and Goodyear, helped by the South African Tyre Manufacturers Conference (SATM) between 1999 and 2007.

The case, dates back to April 2008 after fleet owner Parsons Transport (Pty) Ltd lodged a complaint claiming local manufactures adjusted their prices within the same parameters and at the same time.

At the time the commission investigated SATM and the four tire makers for discussing and agreeing to fix the prices of passenger, light truck, bus, off-the-road, agricultural and earthmover tires. 

The investigation also found that importers of tire products namely Yokohama and Michelin were not involved in the cartel conduct.

In September 2010, Bridgestone applied for and was granted conditional immunity from prosecution in terms of the commission's corporate leniency policy (CLP). 

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 “coffee table meetings”, it said, were attended by the tire makers’ sales and marketing representatives, and coordinated the timing and the average percentage price increase of tires. 

In December 2011, the commission also settled its price fixing case with Apollo Tyres South Africa and the company agreed to pay R45 million (nearly €4 million at the time). 

This recent round of hearing 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 claims against them.