TRIBUNAL CONFIRMS CONSENT AGREEMENT IN WHICH JAPANESE CAR PARTS MANUFACTURER, ACCUSED OF CARTEL CONDUCT, AGREES TO PAY A PENALTY

 22 December 2021


A Japanese car parts manufacturer has agreed to pay a settlement amount of R447 258 after being accused of allegedly colluding to fix prices, divide markets and tender collusively with respect to supplying parts for five different Nissan and Toyota vehicles between 2004 and 2010.

 

The settlement amount forms part of the terms of a consent agreement concluded between Denso Corporation (“Denso”) and the Competition Commission (“the Commission”). The consent agreement has been confirmed as an order by the Tribunal.

 

Denso also agrees to, among others, refrain from engaging in conduct in contravention of the Competition Act (“the Act”) in the future. In addition, Denso will continue to implement and monitor a competition law compliance programme.  

 

Although Denso has agreed to the terms of the consent agreement, it does not admit liability in respect of the conduct as alleged by the Commission. The Commission, in turn, has agreed to enter into the consent agreement with Denso without an admission of liability, due to the insignificant nature of the effects of Denso’s conduct in South Africa.

 


Background

 

The Commission launched an investigation into Denso and another Japanese firm, NGK Insulators (“NGK”), after receiving information that the two firms allegedly:

  • fixed prices when quoting to original equipment manufacturers (“OEMs”); and
  • divided markets and tendered collusively in respect of requests for quotes (“RFQs”) in the market for the manufacture and supply of automotive components to OEMs outside of South Africa.

 

The Commission’s investigation revealed that Denso and NGK had colluded to fix prices, divide markets and tender collusively in relation to five different RFQs issued by Nissan and Toyota for the supply of vehicle parts. The Commission concluded that the conduct contravened sections 4(1)(b)(i), (ii), and (iii) of the Act.

 


 

Issued by:

Gillian de Gouveia, Communications Officer
On behalf of the Competition Tribunal of South Africa
Cell: +27 (0) 82 410 1195
E-Mail: GillianD@comptrib.co.za
Twitter: @comptrib


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