The Competition Commission’s statement that it has found evidence of anti-competitive practices by motor manufacturers, dealers, importers and distributors came as a surprise, Volkswagen South Africa (VWSA) said on Tuesday.
”Today’s press statement from the commission comes as a surprise to VWSA,” said general manager of communications Bill Stephens in a statement.
Stephens said VWSA last gave oral evidence to the commission in August last year and submitted all requested documentation.
He said it had always been VWSA’s ”stated policy to fully cooperate with the commission in its investigation”.
Stephens said on the information available, there is no suggestion of any contraventions by VWSA of the Competition Act such as those referred to by the commission in its press statement.
Stephens said through a public-relations officer that the company can offer no further comment, as the matter is under litigation.
Nico Vermeulen, the director of the National Association of Automobile Manufacturers of South Africa (Naamsa), said the commission’s rulings are still untested allegations.
”The Competition Commission has come to certain conclusions, which have to be tested before the Competition Tribunal,” he said. ”These are still untested allegations.
”All the manufactures that are supposed to have been involved have denied and disputed involvement in anti-competitive practices.”
Naamsa represents various automobile companies in South Africa, including DaimlerChrysler, BMW, Toyota, Nissan, Ford and Fiat.
Naamsa had been cited by the commission as one of the respondents in its investigations, but on Tuesday the commission said no evidence suggesting anti-competitive practices contravening the Competition Act was found against it, nor was there evidence it had been used as a forum for price-setting collusion.
The commission on Tuesday in Pretoria announced a collusion and price-resale maintenance case will be referred to the Competition Tribunal, where the implicated parties will be prosecuted.
The case is to come after the end of investigations into anti-competitive practices in the motor industry that began in May last year.
”The investigation was initially dubbed a collusion investigation into price-fixing by manufacturers that became broader and included investigations into anti-competitive practices in the industry as a whole, including manufacturers, dealers, importers and distributors,” competition commissioner Menzi Simelani said.
He said an investigation into the use of market dominance by manufacturers and/or importers to charge excessively for their products is still under way.
Simelani said evidence of anti-competitive practices include contraventions of the Competition Act such as agreements that imposed restrictions that had the effect of substantially lessening competition.
He said evidence revealed DaimlerChrysler SA (DCSA), BMW SA, VWSA, General Motors SA (GMSA), Nissan SA and their dealers had entered into franchise and dealer agreements that contained a number of restrictions that negatively affected competition in the market in which they operate.
The commission said a decision in respect of the Ford motor company in that regard is still to be finalised.
No action will be taken against Honda SA, Renault SA, Hyundai SA, Volvo SA and Peugeot SA, as no evidence was found suggesting these companies used anti-competitive practices.
The investigation found dealers were restricted and, in some cases, punished by manufacturers for seeking customers outside their franchise areas, and for giving discounts above a margin set by the manufacturers.
”Dealers contravening the out-of-area sales restrictions posed by manufacturers would stand to be excluded from collaborate promotions for example,” said Simelani. — Sapa