Today 1 July 2021, the Competition Commission’s Guidelines for Competition in the South African Automotive Aftermarket become effective. The final guidelines were issued on 29 January 2021 and are now available on the Commission’s website, at http://www.compcom.co.za/guidelines/.

The Guidelines were prepared in terms of section 79(1) of the Competition Act (89 of 1998, as amended), to provide practical guidance to industry players towards the adoption of pro-competitive measures in the Automotive Aftermarket, and to promote greater participation of small businesses as well as historically disadvantaged individuals (HDIs) in the market. The Guidelines also place responsibility on all industry players to disclose certain information to consumers, to enable them to make informed choices; the guideline also addresses consumer safety.  A dispute resolution process and a self-monitoring mechanism by industry stakeholders is also articulated.

From the publication of the Guidelines in January the Commission has embarked on nationwide campaign with all relevant stakeholders to ensure that there is awareness and understanding of the implications of the guidelines.

The publication of the guidelines is a culmination of extensive consultation and advocacy work that the Commission has conducted since 2017, following numerous complaints from various independent players as well as members of the public. These parties raised concerns about alleged anti-competitive practices that foreclose independent players in the automotive aftermarket.

“These Guidelines are in line with the Commission's strategy of opening up markets to support growth and transformation. We urge the OEMs and Insurers to embrace the Guidelines and comply as this asks them to do no more than what they already do in their home countries and other parts of the world. For its part, the Commission is absolutely committed to ensuring that competitive outcomes are achieved in this sector, in line with the principles in these Guidelines,” says Competition Commissioner Tembinkosi Bonakele.

The Commission would like to thank the industry players for their contribution and participation in this process.

 

Issued by The Competition Commission of South Africa