The Competition Commission of South Africa has filed a referral for prosecution against NGK Spark Plugs together with its South African subsidiary, NGK Spark Plugs SA.
The Commission said this is due to NGK’s alleged involvement in price fixing, market division, and collusive tendering in contravention of the Competition Act.
“The Commission seeks an order from the [Competition] Tribunal to levy an administrative penalty equivalent to 10% of the annual turnover of either NGK Limited or NGK SA, the one paying the other to be absolved,” it said.
On 13 October 2014, the Competition Commission announced that it had launched investigations into price fixing, market division, and collusive tendering in the manufacturing and supplying of automotive components to original equipment manufacturers in South Africa.
The Commission said that it looked into NGK and NGK SA as part of its investigation into 63 automotive manufacturers alleged to have colluded on 310 separate instances involving 92 automotive components.
“The Commission’s investigation against NGK found that from at least 2008 NGK colluded with Denso when responding to a request for quotation issued by Fuji Heavy Industries, for the supply of spark plugs for AR18 engines installed in its Subaru Impreza, Subaru Forester, and Subaru Legacy vehicles sold in South Africa,” it said.
According to the Commission, this is in contravention of the Competition Act 89 of 1998.
TopAuto contacted NGK SA for a statement on the matter, but the company did not provide feedback by the time of publication.