Car safety firm agrees to pay hefty Competition Commission fine

Cape Town - Autoliv, one of the world’s largest manufacturers of car safety systems, has agreed to pay an administrative penalty of just under R150m for contravening the Competition Act.   

In a statement issued on Monday, the Competition Commission said the Swedish firm concluded a settlement agreement for its involvement in “prohibited practices like price fixing, market division and collusive tendering” with competitors, including TRW, the Takata Group, Toyoda Gosei and Tokai Rika.

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

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

In response to a request for comment, a spokesperson for the Swedish firm noted that the payout was a settlement agreement between it and the Competition Commission, and that it had cooperated with the Commission during the investigation. 

• READ: Vodacom surprised at Competition Commission investigation

The auto safety components maker is the first of the five manufacturers under investigation by the commission to agree to pay an administrative penalty. 

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

Collusion 

The commission said it started its investigation into Autoliv and its competitors in 2012. 

The initial complaint was brought under a section of the Competition Act that prohibits firms from fixing a purchase or selling price, dividing markets by allocating customers, suppliers or territories, or engaging in collusive tendering. 

"The conduct affected tenders issued for the following vehicles: VW Polo, MQB platform (VW Golf), Audi A1, A3, A6, A7, A8, Q3, VW 120Up, VW Eos convertible, Passat, Porsche Cajun/Macan, F15/F16 platform (BMW X5/X6), PL6 platform (5,6 and 7 series) and M Sport," stated the commission.    

As Autoliv noted in its 2016 annual report, it expected to pay a fine. It stated: "The Company believes that a loss with respect to this investigation is probable." 

It also stated that it was under investigation for alleged collusive tendering or antitrust behaviour in a number of other countries, including the US, Canada and Brazil. 

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