The Competition Commission has found that PG Glass and Glasfit have been operating a cartel, working together to set prices. <\/p>\n\n\n\n
The Commission has referred a complaint against the two companies to the Competition Tribunal for prosecution.<\/p>\n\n\n\n
The commission received the complaint against the glass providers who “compete” in the market for the distribution and fitment of automotive glass.<\/p>\n\n\n\n
PG Glass is one of South Africa’s largest and most iconic glass manufacturers and installers, with a history dating back to 1897. Glasfit is a younger company, founded in 1989.<\/p>\n\n\n\n
The companies are alleged to have entered into an agreement and\/or engaged in a concerted practice to fix the prices of automotive glass products they supply to end-user customers and insurance companies. <\/p>\n\n\n\n
This would constitute price fixing, which is prohibited under the Competition Act of 1998. The conduct was alleged to have started in 2004 and remains ongoing.<\/p>\n\n\n\n
An investigation from the Competition Commission found that PG Glass and Glasfit have a longstanding agreement to increase the price of automotive glass they supply to customers.<\/p>\n\n\n\n
The companies were found to increase prices by the same percentage point annually. <\/p>\n\n\n\n
“Automotive glass forms part of industrial intermediary products, a priority sector for the commission,” said Commissioner Doris Tshepe.<\/p>\n\n\n\n
“Dismantling of the alleged cartel will contribute towards fairer pricing of automotive glass for the benefit of consumers as well as insurance companies.” <\/p>\n\n\n\n
The Commission has now sought an order from the Tribunal declaring that the respondents have contravened the Competition Act. <\/p>\n\n\n\n
It suggested that the two companies be given an administrative penalty equal to 10% of their respective turnover. <\/p>\n\n\n\n
BusinessTech asked PG Glass and Glasfit for comment, and will add it once received.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The Competition Commission has found that PG Glass and Glasfit have been fixing prices, and is now seeking massive fines for contravening South Africa’s competition laws.<\/p>\n","protected":false},"author":95,"featured_media":851459,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[9872],"tags":[24794,24793],"class_list":["post-851453","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-glasfit","tag-pg-glass"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=851453"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851453\/revisions"}],"predecessor-version":[{"id":851464,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/851453\/revisions\/851464"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/851459"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=851453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=851453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=851453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}