Car safety firm agrees to pay hefty Competition Commission fine

One of the world’s largest manufacturers of car safety systems, Autolive has agreed to pay an administrative penalty of just under R 150 million for contravening the Competition Act.

A statement was issued on Monday by the Competition Commission saying the Swedish company had concludes a settlement agreement for its involvement in “Prohibited practices like market division, price fixing and collusive tendering” with competitors, that included TRW, Toyoda Gosei, Tokai Rika and Takata Group.

“The settlement follows a Commission investigation into collusive conduct against manufacturers of airbags, seatbelts and steering wheels (including Autolive and its competitors) for allegedly fixing prices, dividing markets and colluding on tenders issued by vehicle manufacturers such as BMW Group and VW Group,” the commission said.

The firm has agreed to pay an administrative penalty of R149 960 540, the commission stated.

The Swedish firm was asked to request to comment, they noted that the payout was a settlement agreement between them and the Competition Commission, and they also stated that they have cooperated with the commission during the investigations.

“The investigation against the other firms continues,” the commission stated.

The investigation into Autolive and kits competitors was started in 2012. The conduct was brought under a section of the Competition Act that prohibits firms from fixing a purchase price and dividing markets.

Be the first to comment

Leave a Reply

Your email address will not be published.