Competition Commission Moves to Prosecute PG Glass and Glasfit for Price-Fixing Scheme

Competition Commission Moves to Prosecute PG Glass and Glasfit for Price-Fixing Scheme

  • Glass manufacturers PG Glass and Glasfit allegedly operated a cartel to fix automotive glass prices since 2004
  • The Competition Commission seeks prosecution for the violations of the Competition Act of 1998
  • Dismantling the cartel could lead to fairer pricing for consumers and insurance companies

Justin Williams, a journalist at Briefly News since 2024, covers South Africa’s current affairs. Before joining Briefly News, he served as a writer and chief editor at Right for Education Africa’s South African chapter.

PG Glass is one of South Africa’s largest and most iconic glass manufacturers and installers
The Competition Commission has found that PG Glass and Glasfit allegedly operated a cartel. Image: PG Glass/Facebook
Source: Facebook

The Competition Commission has found that PG Glass and Glasfit allegedly operated a cartel, coordinating to fix the prices of automotive glass. The commission referred the complaint to the Competition Tribunal for prosecution.

The two companies colluded in the market

According to BusinessTech, the complaint comes after allegations that the two companies colluded in the market for the distribution and fitment of automotive glass to end-user customers and insurance companies. PG Glass, one of South Africa's largest and most iconic glass manufacturers and installers, has a history dating back to 1897. Glasfit, a younger company, was founded in 1989. The investigation revealed that the companies allegedly entered into an agreement or engaged in a concerted practice to raise the prices of automotive glass products by the same percentage point each year.

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The conduct is said to have started in 2004 and continues to this day. Commissioner Doris Tshepe said automotive glass forms part of industrial intermediary products, a priority sector for the commission. She added that dismantling the alleged cartel would benefit both consumers and insurance companies by ensuring fairer pricing. The commission has asked the Competition Tribunal to declare that PG Glass and Glasfit contravened the Competition Act of 1998 and suggested that each company be hit with an administrative penalty equal to 10% of its turnover.

The commission has asked the Competition Tribunal to declare that PG Glass and Glasfit contravened the Competition Act of 1998
The investigation revealed that the companies allegedly entered into an agreement. Image: Abramjee/X
Source: Twitter

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Source: Briefly News

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Justin Williams (Editorial Assistant) Justin Williams joined Briefly News in 2024. He is currently the Opinion Editor and a Current Affairs Writer. He completed his Bachelor of Arts (BA) degree in Film & Multimedia Production and English Literary Studies from the University of Cape Town in 2024. Justin is a former writer and chief editor at Right for Education Africa: South African chapter. Contact Justin at justin.williams@briefly.co.za