South Africa: Toyota cartel makes market ‘uncompetitive’ says regulator

The Competition Commission on Monday referred a car carrier company‚ Kawasaki Kisen Kaisha‚ for prosecution to the Tribunal for colluding on a tender for transportation of Toyota vehicles.

The commission believes action must be taken against it for price fixing‚ market division and collusive tendering involving the transportation of Toyota vehicles from South Africa to Europe‚ North Africa and the Caribbean Islands via Europe‚ West Africa‚ East Africa and Red Sea by sea.

“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping liners in this region results in inflated prices for cargo transportation‚” said the Commissioner of the Competition Commission Tembinkosi Bonakele.

“Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region‚” he said.

Full Content: Business Live

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.