Serious allegations against two prominent South African companies

The Competition Commission has referred a complaint against PG Glass and Glasfit to the Competition Tribunal for prosecution. 

This follows an investigation from the commission, which found the two companies to have been working as a cartel to fix prices for automotive glass products. 

“This conduct constitutes price fixing, which contravenes section 4(1)(b)(i) of the Competition Act 89 of 1998 (as amended),” the commission said in a statement. 

The commission said the conduct is alleged to have started in 2004 and remains ongoing, causing customers to pay inflated prices for products and services. 

The commission’s investigation found that the Respondents have a longstanding agreement to increase the price of automotive glass they supply to customers by the same percentage point annually.

“Automotive glass forms part of industrial intermediary products, a priority sector for the Commission,” Tshepe said. 

“Dismantling of the alleged cartel will contribute towards fairer pricing of automotive glass for the benefit of consumers as well as insurance companies.” 

The commission said it is seeking an order from the Competition Tribunal declaring that the respondents have contravened the Competition Act and are liable for the payment of an administrative penalty equal to 10% of their respective turnover. 

PG Glass is one of South Africa’s oldest companies, with it being founded in Cape Town in 1897. It is now part of the PG Group, which is a global giant. 

The company still produces, distributes, and installs automotive glass, building glass, aluminium frames, and window film solutions in South Africa. 

PG Glass employs more than 3,000 people in South Africa, and all its factories use locally-sourced raw materials and products in the production of glass and related products. 

On the other hand, Glasfit is a much younger company, founded in 1989 and focusing on glass repair and replacement. 

Daily Investor has reached out to PG Glass and Glasfit for comment. Once a response is received, it will be added to this article.