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April 11, 2008 02:00 AM

South African commission raids Dunlop, Bridgestone

David Shaw
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    JOHANNESBURG, South Africa (April 11, 2008) — The South African Competition Commission conducted a search of sites owned by Dunlop Tyres International (Pty.) Ltd. and Bridgestone South Africa (Pty.) Ltd. April 4.

    The commission also searched the office of SA Tyre Manufacturers Conference (Pty.) Ltd., a private company that is an association of the tire manufacturers and is used by its members to discuss industry issues, developments and concerns.

    The commission said it seized documents from Dunlop's Durban, South Africa, offices and from Bridgestone and SATMC's offices, both in Johannesburg.

    The commission said it is investigating allegations of price fixing in the tire industry, prompted by a complaint alleging that the tire manufacturers adjust their prices around the same time and within the same parameters. The commission did not identify the complainant.

    The commission said the SATMC is suspected of being the venue for the alleged discussions to determine price increases.

    Luis Ceneviz, CEO of Dunlop Tyres International, said Dunlop staff members co-operated fully with all requests from the commission staff.

    "Dunlop is pleased that the Competition Commission is regulating anti-competitive behavior, which is in the interest of the South African consumer, and remains committed to upholding the relevant regulations as set out in the Competition Act," he said.

    Bridgestone had not responded to a request for comment at press time.

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