SOUTH AFRICA FLES MORE CHARGES AGAINST JAPANESE SHIPPING LINE FOR COLLUSION

PRETORIA,A Japanese car shipping company is facing a further 10 charges after it was recently referred to the South African Competition Tribunal for prosecution for collusive tendering, price fixing and market division.

The Competition Commission has referred 10 more charges against Kawasaki Kisen Kaisha Ltd (K-Line) to the Tribunal for adjudication. The Commission is also seeking administrative penalties of 10 per cent of the company's annual turnover for each of the additional 10 charges.

In March, the Commission referred its first case against K-Line to the Tribunal. The matter relates to price fixing, market division and collusive tendering practices involving the transportation of cars produced by Toyota South Africa Motors, by sea.

The latest charges against K-Line involve, among others, collusive activities involving a tender issued by Toyota Motors Asia Pacific to transport Toyota vehicles from India to South Africa by sea; tenders issued by Toyota Motor Corporation and Ford Motor Company to transport Toyota and Ford cars from Japan to West Africa and from South Africa to West Africa by sea; and a tender issued by BMW for the transportation of BMW cars from South Africa to North America by sea.

Other cases involve tenders issued for transporting Mercedes motor vehicles from South Africa to North America;

Honda cars from Thailand to South Africa; Mitshubishi cars from Japan and Thailand to South Africa; Nissan cars from South Africa to Europe; Suzuki motor vehicles from India to Africa (including South Africa); and Suzuki cars from Japan to South Africa.

So far, three companies have paid a total of more than 215 million Rand (about 15.46 million US dollars) in administrative penalties in this matter. In 2015 and 2016 NYK, WWL and Eukor Car Carriers (Eukor) admitted to colluding on these tenders and settled with the Commission.

MOL, another Japanese company, was not fined, as it was first to approach the Commission and co-operated. MOL, NYK, WWL and Eukor will co-operate with the Commission in prosecuting K-Line.

Source: NAM NEWS NETWORK

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