The Competition Commission is calling for the prosecution of publicly listed Japan-based NGK spark plug company and its South African subsidiary, NGK Spark Plugs SA Proprietary Limited.
NGK is a global manufacturer and supplier of spark plugs used to manufacture automotive engines.
The Commission found NGK guilty of price-fixing, market division and collusive tendering of spark plugs, contravening section four of the Competition Act. It’s seeking penalties of up to 10% of NGK’s annual turnover.
“The Commission investigated NGK and NGK SA as part of its investigation of 63 automotive components manufacturers alleged to have colluded on 310 separate instances involving 92 automotive components,” said Commission spokesperson Siyabulela Makunga.
The investigation revealed that in 2008, NGK colluded with Denso in a quotation request by Fuji Heavy Industries for the supply of spark plugs for the AR18 engine installed in its Subaru Impreza, Subaru Forrester and Subaru Legacy vehicles sold in South Africa.
NGK has been under investigation for colluding in the supply of automotive 2 components since 2014.
The company said it would release an official statement soon.