BMW dealers on Wednesday agreed to pay a R8-million penalty after the Competition Commission found they had been involved in price fixing and anti-competitive trading conditions.
”In terms of today’s agreement, the dealers of BMW have agreed to pay an administrative penalty of R8-million and to implement compliance programmes, which will ensure that their businesses comply with the Competition Act,” said acting commissioner Shan Ramburuth.
The agreement will be referred to the Competition Tribunal for confirmation.
”The commission’s investigation into the motor-vehicle industry has resulted in administrative penalties totalling R51,65-million and all respondents implicated are obliged to implement compliance programmes.
”The commission will continue to monitor new motor-vehicle prices and the proper implementation of the compliance programmes,” Ramburuth said.
Last year, the motor industry denied it was guilty of anti-competitive practices, as alleged by the Competition Commission.
BMW South Africa, Volkswagen South Africa and Subaru, among others, all denied any wrongdoing.
BMW South Africa also vowed to contest any action brought against it. — Sapa