South Africa to prosecute Chilean shipping company for cartel conduct

 South Africa to prosecute Chilean shipping company for cartel conduct

PHOTO CREDIT: Hans Hillewaert

A Chilean car shipping company has been referred to the Competition Tribunal of South Africa for prosecution for collusive tendering, price fixing and market division.

Compania Sud Americana De Vapores S.A (CSAV) has allegedly breached the Competition Act in respect of tenders issued by Ford Motor Company, according to a statement issued by the Competition Commission South Africa.

As informed, CSAV is accused of colluding with Japanese Mitsui OSK Lines (MOL) in the shipment of Ford motor vehicles from South Africa to Europe and the Mediterranean (including North Africa).

In 2015, CSAV paid a ZAR 8.8 million (USD 613,792) penalty following a consent agreement with the commission in respect of a similar tender issued by General Motors. CSAV denied involvement in the Ford tender.

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To date, four companies have paid a total of more than ZAR 310 million in administrative penalties in this matter. Between 2015 and 2018, NYK, Wallenius Wilhelmsen Logistics (WWL) and Eukor Car Carriers admitted collusion and settled with the commission.

In 2017, the commission referred Hoegh Autoliners Holdings to the Tribunal for prosecution on seven charges of cartel conduct on similar shipping tenders issued by several motor manufacturers.

MOL was granted leniency for its involvement in the cartel conduct in exchange for information and full cooperation in the matter.