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Competition regulation for a growing and inclusive economy

2017-11-01 13:03

ADVERTORIAL

The Competition Commission of South Africa is conducting advocacy work in the South African automotive aftermarket industry and has gazetted a Draft Code of Conduct for public comment.

The Commission’s historical investigative activities together with its recent preliminary engagements with various entities within the automotive industry have indicated that this industry requires transformation. The ultimate intention of the Code is to address anti-competitive behaviour within this industry whilst at the same time to transform this industry to encourage increased economic participation - together with a greater spread of ownership - of historically disadvantaged individuals. The Code will bind various original equipment manufacturers (“OEM”), government bodies and industry associations who will become signatories to the final Code.

The intended outcomes of the Commission’s Code of Conduct include:

i. Enabling small and independent service providers owned by historically disadvantaged individuals to be able to provide auto-body repairs, and service and maintenance work on motor vehicles whilst these vehicles are covered by warranties;

ii. Enabling all service providers to be able to use freely purchase and use equal matching spare parts in addition to OEM and identical spare parts when they provide service, maintenance and repair work to motor vehicles;

iii. Enabling more historically disadvantaged individuals with the opportunity to own OEM car dealerships;

iv. Providing consumers with a greater choice of products and prices when they are required to purchase spare parts for their motor vehicles; and

v. Providing consumers with more transparent information about the costs involved in the purchase of a motor vehicle.

SUBMISSION PROCEDURES

The Commission has published its Draft Code of Conduct on 22 September 2017 and invites submissions on the Draft Code from all automotive industry participants (especially small and independent repairers and maintenance service providers), consumers and any other interested parties. The deadline for submissions is 3 November 2017.

All submissions must be typed or hand-written (preferably in English), marked for the attention of Mr Mziwodumo Rubushe and delivered to one of the following addresses:

Email:
MziwodumoR@compcom.co.za

Hand delivered to:
Office of the Commissioner, Mulayo Building, Block C, Third Floor, The DTI Campus, 77 Meintjies Street, Sunnyside, Pretoria, 0002

Or posted to:
Private Bag X23, Lynwood Ridge, Pretoria.

If you require any assistance in making your submission please contact the Competition Commission electronically on Mr Rubushe’s email above or telephonically on 012 394 3200.

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