PG Glass and Glasfit to be prosecuted for alleged price-fixing, says CompCom

Two dominant players in South Africa's automotive glass sector are in trouble for allegedly operating a cartel.

The Competition Commission (CompCom) has referred a complaint against PG Glass and Glasfit to the Competition Tribunal for prosecution.

Conduct which constitutes price-fixing is alleged to have started in 2004 and remains ongoing, says the competition watchdog.

Stephen Grootes interviews Makgale Mohlala, divisional manager for Cartels at the Commission.

The two automotive glass companies have a longstanding agreement to increase the prices of automotive glass they supply to ordinary customers and insurance customers, Mohlala says.

"The evidence obtained during our investigation indicates that, every year they're communicating a price increase between themselves which is the same, and then applying it."

"This constitutes price fixing in terms of the Competition Act...We've made a finding that they have colluded in contravention of the law, hence we referred the matter to the Competition Tribunal for prosecution."

The CompCom is seeking an order from the Tribunal declaring that the respondents have contravened the Act and are liable for the payment of an administrative penalty equal to 10% of their respective turnover.

Mohlala affirms that the law makes provision for cartel victims to claim damages in the High Court, a process which would kick in once the Tribunal has made its ruling.

For more detail, listen to the interview audio at the top of the article