The Competition Commission referred a complaint against PG Glass and Glasfit to the Competition Tribunal for prosecution.
PG Glass and Glasfit operate in the automotive glass sector and supply laminated and toughened automotive glass in South Africa.
The two companies compete in the market for the distribution and fitment of automotive glass.
They are alleged to have entered into an agreement and or engaged in a concerted practice to fix prices of automotive glass products.
PG Glass and Glasfit supply these products to end-user customers and insurance companies in South Africa.
The Competition Commission said this conduct constitutes price fixing, which contravenes the Competition Act 89 of 1998.
“The conduct is alleged to have started in 2004 and remains ongoing,” the Commission said in a press statement.
The Commission’s investigation found that PG Glass and Glasfit have a longstanding agreement to increase the price of automotive glass they supply to customers.
According to the investigation, PG Glass and Glasfit increase their prices by the same percentage point annually.
“Automotive glass forms part of industrial intermediary products, a priority sector for the Commission,” said Commissioner Doris Tshepe.
“Dismantling the alleged cartel will contribute towards fairer pricing of automotive glass for the benefit of consumers as well as insurance companies.”
The Commission is seeking an order from the Tribunal declaring that PG Glass and Glasfit have contravened the Act.
This will make the two companies liable to pay an administrative penalty equal to 10% of their respective turnovers.
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