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The Competition Commission has issued for public comments in the Government Gazette (No 43015) draft Guidelines for Competition in the South African Automotive Aftermarket Industry.

The Guidelines, prepared in terms of section 79(1) of the Competition Act No. 89 of 1998 (as amended), provide practical guidance to firms in the automotive sector on conduct that may be anti-competitive (and how to mitigate this) and to encourage competition through greater participation of small businesses as well as historically disadvantaged groups.

Since 2017 the Commission has conducted extensive consultation and advocacy work in the automotive aftermarket industry following concerns of possible anti-competitive conduct.

The Commission has in the process engaged with numerous private and public entities to fully understand the competitive dynamics within the automotive aftermarket industry. This process was triggered by numerous complaints from various independent players in the automotive aftermarket industry as well as members of the public. These parties raised concerns about alleged anti-competitive practices that foreclose independent players at all levels of the automotive value chain.

The purpose of the guidelines is mainly twofold, namely, to provide guidance to firms on conduct that may fall foul of the Competition Act, and therefore anti-competitive, and to enhance transformation in the industry to foster inclusion.

The Commission invites automotive industry participants (especially small and independent repairers and maintenance service providers), regulators, consumers and any other interested party to submit their views and comments on the draft guidelines.

The draft Guidelines are published to allow for comment and submissions from all interested parties, with the notice published in the Government Gazette and a copy of guidelines on the Commission’s website (at http://www.compcom.co.za/guidelines/). Following this consultation phase, the Commission will publish the final guidelines.

The deadline to provide comments is 16 March 2020, 17:00 (SA time). Written comments must be submitted to Advocacy@compcom.co.za.

Issued by on Behalf of The Competition Commission of South Africa