Commission finds Toyota’s behaviour uncompetitive towards Wesbank – SABC News
Competition Commission of South Africa has warned those who attempt to collude and close off competition will be caught and prosecuted. This comes as Toyota financials and Wesbank reached a R30 million settlement without admission of liability following accusations that Toyota restrained Wesbank from offering motor vehicle finance to customers purchasing vehicles at authorised Toyota dealerships.
The commission found that Toyota was restricting Wesbank from financing its clients. The vehicles involved were new Toyota, Lexus and Hino vehicles and any used vehicles sold through the authorised Toyota dealerships.
The commission says this is a contravention to the Competition Act 89 of 1998 and is, therefore, unacceptable. As part of the settlement agreement, Toyota will remove restrictions that prevented Wesbank from financing motor vehicles purchased from authorised Toyota dealerships.
Competition Commission Head of Cartels Division, Makgale Mohlala, says, “In terms of the settlement, all restrictions that were placed on Wesbank have now been removed. The customer buying vehicles from Toyota dealerships now has an option of Wesbank as their financier.”
Meanwhile, the fine came without admission of liability from Toyota.
“For us, it is more important to introduce competition in the market between Toyota financial services and Wesbank than securing a liability or admission of liability,” says Mohlala.
The commission says the confirmation of this settlement agreement by the tribunal concludes all proceedings between the commission, Toyota and Wesbank in relation to this matter.