The motoring industry has long been characterised by fierce competition amongst brands striving to outdo one another in innovation and performance. This rivalry, while intense, has ultimately propelled the entire industry forward, driving advancements in technology, safety, and sustainability.
In South Africa, competition law serves as a catalyst for innovation in the aftermarket and retail sector of the automotive industry. By ensuring fair competition, it encourages local aftermarket retailers and service providers to continuously innovate in order to differentiate themselves and attract customers. This drive for innovation can lead to the development of new products, services, and business models that cater to the specific needs and preferences of South African consumers. From innovative vehicle customisation options to cutting-edge maintenance and repair services, competition law inspires aftermarket retailers to push the boundaries and offer solutions that enhance the overall customer experience while promoting sustainability.
The very nature of our work is to ensure that the sector is future proof, through adhering to only the highest standards and by speaking out as a unified voice for the sector. This extends to competition as well and, as a valued and responsible member of the RMI, it is important you take note of South African Competition laws within which we all need to operate.
Importantly the RMI supports healthy competition which drives innovation and we recognise that some of our members are in a horizontal relationship (i.e. competitors) and/or others, in a vertical relationship (i.e. firms and their suppliers, customers, or both). We further recognise that employees of the RMI, as well as elected office bearers and members, often represent the RMI on various RMI and other committees and platforms that include other competitor businesses who are not members. We support and encourage healthy relationships with other accreditation bodies like the SABS, the NRCS, the Dtic and the like.
To help you better understand and navigate this process and minimise the risk of a contravention of the Competition Act, we have prepared an in-depth guideline.
The Competition Law Compliance Guidelines provides a basic outline of competition law compliance and risks. It is intended to guide and assist RMI employees, directors, members, office bearers, other representatives and participating members to recognise sensitive situations, problem areas, and behaviour that are, or might be considered, to be anti-competitive so that relevant steps can be taken to avoid any concerns.
We encourage you not to see these as an alternative to seeking specific legal advice. Remember it is your responsibility to know and understand the content of these guidelines and to ensure that your behaviour complies with the provisions of the competition act.
Any employee, office bearer, member, or other representative of the RMI who becomes aware of behaviour by an RMI participating member that gives rise to risk of non-compliance with the Competition Act must immediately inform either of the Chief Executive Officers.
The risks of non-compliance can lead to various negative outcomes including administrative penalties, civil damages claims, reputational damage and even possible criminal liability. Over the years we have seen how transgressors in the pharmaceutical and retail space for example have engaged in what has been deemed collusive tendering and market manipulation.
I urge you to be highly cognisant of what you can and cannot do and to ensure all new members are aware of the relevant restrictions. The full document is available on our website: https://www.rmi.org.za/regulatory-compliance-2/
In closing, the onus is on us as business leaders to leverage competition to fuel innovation and challenge the status quo. I think Steve Jobs put it succinctly when he said: “Innovation distinguishes between a leader and a follower.”
Ipeleng Mabusela, CEO: Strategy and Corporate Support
Read the March Automobil here: Automobil March 2024 (publuu.com)
