Tribunal approves settlement between Commission, global automotive technology company

The Tribunal has approved, as an order, a consent agreement between the Competition Commission and Faurecia Emissions Control Technologies South Africa (Pty) Ltd, which is owned by Faurecia SE in France.

The agreement relates to an investigation initiated by the Commission in 2014 against several motor vehicle exhaust system manufacturers for alleged price fixing, market division and collusive tendering in the market for the supply of motor vehicle exhaust systems to Original Equipment Manufacturers (OEMs) worldwide. 

In terms of the consent agreement, Fauracia admits that it engaged in dividing markets and collusive tendering, in contravention of the Competition Act. The automotive technology company has agreed to pay an administrative penalty of R66 885.66 (sixty-six thousand eight hundred and eighty-five Rand and sixty-six cents).

Among others, Faurecia agrees to fully cooperate with the Commission in its prosecution of the remaining respondent in the Commission’s complaint referral. This cooperation includes, but is not limited to, providing evidence and testifying during the hearing of the complaint referral.

Background

The Commission’s investigation revealed the following:

• Around 2003 Eberspächer Exhaust Technology GmbH & Co KG (Eberspächer) and Faurecia had an agreement and/or engaged in a concerted practice to divide markets by allocating specific types of goods and tender collusively in relation to a tender issued by Daimler AG;
• The tender was for the manufacture and supply of motor vehicle exhaust systems for the Mercedes Benz C-Class W204 platform;
• Eberspächer and Faurecia were invited to submit bids. Daimler AG required exhaust systems for both gasoline and diesel engines;
• The respondents agreed that, in responding to the RFQ for the W204 platform in 2003, Eberspächer would focus only on the gasoline portions of the RFQ, while Faurecia would focus only on the diesel portions;
• Ultimately, Faurecia was awarded the diesel portion of the RFQ, and Eberspächer was awarded the gasoline portions by Daimler AG;
• The above conduct contravened section 4(1)(b) (ii) and (iii) of the Competition Act.

Issued by:

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa

Tel: +27 (0) 12 394 1383
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib