Japanese car parts manufacturer Denso, which was found guilty of collusion and price fixing of vehicle parts for multiple Nissan and Toyota models in 2018, has finally agreed to pay a settlement of nearly R450,000 to the Competition Commission.
A 2012 investigation by the watchdog spanning six years revealed that Denso together with NGK Insulators, another Japanese firm, had colluded to fix prices, divide markets and tender collusively in the supply of parts for at least five models of Nissan and Toyota between 2004 and 2010.
The car models affected by the price fixing included Nissan’s 2008 Murano and 2011 Micra as well as Toyota’s 2006 Avensis and 2012 Subaru BRZ, among others.
The commission said on Wednesday it had entered into a consent agreement with Denso, though without an admission of liability as the manufacturer would not agree to one regarding the conduct alleged by the commission.
Co-conspirator NGK opted not to enter into a settlement and is being prosecuted before the Competition Tribunal, commission spokesperson Siya Makunga told Business Day.
“If they are found guilty of collusion by the tribunal, they will be fined up to 10% of their total annual turnover per instance of collusion,” Makunga said.
Along with the penalty, Denso has agreed to refrain from engaging in unauthorised conduct in the future, while it internally implements and monitors a competition law compliance programme.
Denso also faces a string of class action lawsuits in the US for contravening competition rules from January 1998 to March 2017.
The applicants said the manufacturer violated federal laws by conspiring to suppress and eliminate competition for heater control panels, wire harness products and other related materials.
A Detroit court is set to make a determination on the suggested settlement amount of $700,000 (R11.1m), and its distribution, in February 2022.
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