Autoliv Inc, the world’s largest automotive safety supplier has agreed to pay an administrative penalty of almost R150 million following its admission of having contravened the Competition Act, Competition Commission said in a statement on Monday.
The company, which manufacture airbags, seatbelts, and steering wheels has concluded a settlement agreement with the Commission for its involvement in prohibited practices like price fixing, market division and collusive tendering with its competitors, namely, TRW Inc., Takata Group, Toyoda Gosei Co Ltd and Tokai Rika Co Ltd
The settlement follows a Commission investigation into collusive conduct against manufacturers of airbags, seatbelts and steering wheels (including Autoliv and its competitors) for allegedly fixing prices, dividing markets and colluding on tenders issued by car manufacturers such as BMW Group and VW Group for the manufacture and supply of airbags, seatbelts and steering wheels.
The conduct affected tenders issued for the following vehicles: VW Polo, MQB platform (VW Golf), Audi A1, A3, A6, A7, A8, Q3, VW 120Up, VW Eos convertible, Passat, Porsche Cajun/Macan, F15/F16 platform (BMW X5/X6), PL6 platform (5,6 and 7 series) and M Sport.
The Commission said Autoliv has agreed to pay an administrative penalty of R149 960 540.
The Commission has filed the settlement agreement with the Tribunal for confirmation as an order.
Commission said investigation against the other firms continues.
In August 2012, the Commissioner initiated a complaint against Autoliv Inc and its competitors for allegedly colluding on tenders issued by automotive manufacturers such as BMW and VW to manufacture and supply of Occupant Safety Systems (seatbelts, airbags and steering wheels) in contravention of section 4 (1)(b) of the Competition Act.