The Competition Commission has accused the Japanese NGK Spark Plug Company Limited (NGK Limited), together with its South African subsidiary - NGK SA, of price fixing and collusion in respect of spark plugs.
Source: Photo by drazen_bajer from Pixabay
The Commission has referred the case to the Competition Tribunal for prosecution, and is recommending an administrative penalty equivalent to 10% of the annual turnover of either NGK Limited or NGK SA, as per the Competition Act.
NGK Limited is a global player in the market for the manufacture and supply of spark plugs to Original Equipment Manufacturers (OEMs).
The Commission investigated NGK and NGK SA as part of its investigation of 63 automotive components manufacturers alleged to have colluded on 310 separate instances involving 92 automotive components. The Commission’s investigation against NGK found that from at least 2008, NGK colluded with Denso when responding to a Request for Quotation (RFQ) issued by Fuji Heavy Industries (FHI), for the supply of spark plugs for AR18 engine installed in its Subaru Impreza, Subaru Forrester and Subaru Legacy vehicles sold in South Africa, in contravention of the Competition Act.
On 13 October 2014, the Competition Commission announced that it had launched investigations into price fixing, market division and collusive tendering in the market for the manufacture and supply of automotive components supplied to OEMs. NGK is one of the firms that the Commission has been investigating for collusive conduct in the supply of automotive components. Spark plugs is one of the components that have been subjected to collusive behaviour by automotive components manufacturers such as NGK.