South Africa’s Competition Commission has referred PG Glass and Glasfit for prosecution, alleging the two dominant automotive glass suppliers colluded to fix prices for more than two decades. The watchdog concluded after an extensive investigation that the companies entered into an agreement or engaged in coordinated practices to raise prices of automotive glass products supplied to consumers and insurance firms.
The Commission alleges the conduct began in 2004 and remains ongoing. Evidence gathered during the inquiry indicates the firms implemented aligned annual percentage increases on products sold to end-users and insurers, potentially affecting millions of vehicle owners. If found guilty by the Competition Tribunal, the companies could face administrative penalties of up to 10% of their annual turnover.
Automotive glass is classified by the regulator as part of the industrial intermediary products segment, which has been prioritised for enforcement due to its role in downstream value chains. Commissioner Doris Tshepe stated that dismantling the alleged cartel would promote fairer pricing in a market that directly influences insurance premiums and repair costs.
The referral comes amid broader scrutiny of input cost inflation across the automotive aftermarket. Transport-related repair and maintenance costs have risen steadily over the past decade, contributing to household expenditure pressures and higher claims costs for insurers. Industry analysts note that automotive glass replacement is a high-frequency insurance claim, meaning coordinated pricing could have had cumulative effects on short-term insurance payouts and consumer premiums.
PG Glass and Glasfit are key players in a market characterised by limited large-scale competitors and established distribution networks. The Commission’s action signals a renewed focus on long-running cartel conduct in sectors supplying essential goods and services.
The matter will now proceed before the Competition Tribunal, where evidence will be tested and potential penalties determined.