• Change of culture needed

    The right leadership will help SA shed its culture of violence, says Mandi Smallhorne.

  • 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

See More

Tyre makers fingered over price-fixing

Sep 06 2010 10:34 I-Net Bridge

Related Articles

Deadline for millers in price fixing saga

Tribunal to confirm bitumen settlement

Questions over World Cup airfare probe

Probe into bicycle price fixing

Concrete cartel company to pay hefty fine

Sasol faces fine over plastic prices

Johannesburg - The Competition Commission has referred a complaint of collusive tendering, price-fixing, information exchange and market allocation against four tyre manufactures and suppliers, including Apollo Tyres, Goodyear, Continental and Bridgestone as well as industry body the SA Tyre Manufacturers Conference (SATMC).

The commission's investigation was prompted by a complaint alleging that the tyre manufacturers simultaneously adjusted their prices around the same time and within the same parameters.

As a result of the complaint, on April 4 2008 the commission conducted a search and seizure operation at the premises of Bridgestone, Apollo and SATMC. 
Pursuant to the commission's investigation and interrogations, one of the cartel members, Bridgestone, applied for and was granted conditional immunity from prosecution in terms of the commission's corporate leniency policy.
In its application for leniency, Bridgestone admitted that it held telephonic discussions and met with its competitors during the period 1999 to 2007 to agree in principle that they should cooperate to ensure stability in the market. 

The meetings, which were attended by the tyre manufacturers' sales and marketing representatives, coordinated the timing and the average percentage price increase of tyres, agreed on the discount structure to be given to tyre dealers and messages to be given to the market explaining the increases.
The cartel concerned the manufacture and supply of passenger tyres, light truck or commercial tyres, trucks and bus tyres, off the road tyres, agricultural tyres and earthmover tyres. 

The main customers of the participants to the cartel are tyre dealers who purchase tyres for resale to consumers, vehicle manufacturers who purchase tyres for new vehicle models and the government which procures tyres for state owned vehicles and fleets through a tender process managed by the State Tender Board.

The commission's investigation found that SATMC was used as a platform for what has been termed "coffee table discussions" to determine price increases and general coordination in the market among the tyre manufacturers.

The investigation also found that importers Yokohama and Michelin were not involved in the cartel conduct.

The commission has requested the tribunal to impose an administrative penalty amounting to 10% of the total turnover of each of SATMC, Apollo, Goodyear and Continental.
goodyear  |  continental  |  bridgestone  |  price-fixing



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote