Shipping company refered to tribunal for prosecution

Bulelani Ngcuka and Sipho Ngwema.

Bulelani Ngcuka and Sipho Ngwema.

Published Sep 12, 2017

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JOHANNESBURG - A Norwegian car shipping company has

been referred to the Tribunal for prosecution on seven charges

relating to collusive tendering, price fixing and market division.

The Competition Commission on Tuesday said in a statement, the

charges stem from a probe into widespread anti-competitive conduct in the

market for the provision of transportation of motor vehicles, equipment

and machinery by sea to and from South Africa.

Hoegh Autoliners Holdings AS (Hoegh) stands accused of

colluding with a Japanese car shipping company, Mitsui O.S.K Lines Ltd

(MOL).

From around 2009, MOL and Hoegh engaged in prohibited

practices in that they agreed and/or engaged in concerted practices as

competitors to fix prices, divide markets and tender conclusively. 

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Among the charges are; collusive activities from around 1997

involving a tender issued by Auto Alliance Thailand to transport Mazda motor

vehicles from Thailand to South Africa and collusive activities from around

2004 involving tenders issued by Toyota South Africa to transport vehicles from

South Africa to Europe and North Africa;

Sipho Ngwema commision’s spokesperson said MOL previously

approached the Commission in terms of its Corporate Leniency Policy and was

subsequently granted leniency for its involvement in the cartel conduct in

exchange for information and full cooperation in the matter.

“In referring the matter against Hoegh to the Tribunal for

adjudication, the Commission is seeking an order declaring that the company is

liable for the payment of an administrative penalty equal to 10% of its annual

turnover on each of the charges.”

- BUSINESS REPORT ONLINE

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