WesBank and Toyota nailed for finance market collusion, hit with R30million fine
WesBank and Toyota Financial Services will pay R30 million to settle a Competition Commission case over allegations they colluded to divide the market for Toyota vehicle financing.
Image: Facebook/ActionSA
WesBank, the division of FirstRand Bank and Toyota Financial Services have agreed to pay R30 million to settle a case with the Competition Commission.
The penalty was paid without admission of liability.
The Commission said the settlement follows its referral on February 1, 2022 and prosecution of a complaint alleging that the companies divided the market for wholesale and retail financing of Toyota vehicles by allocating suppliers and customers.
The alleged practice limited competition in the financing market for new and used Toyota, Lexus, and Hino vehicles.
"It was alleged that in terms of the Respondents’ joint venture agreement, WesBank was restrained from offering motor vehicle finance to customers seeking to purchase vehicles at authorised Toyota dealerships," the commission said.
"All vehicle finance applications made directly to WesBank by customers seeking to purchase vehicles from authorised Toyota dealerships were referred to the joint venture, TFSSA, for financing. The vehicles involved were new Toyota, Lexus and Hino vehicles, and any used vehicles sold through the authorised Toyota dealerships".'
The commission added that, as "part of the settlement agreement, the two companies will remove restrictions that prevented WesBank from financing motor vehicles purchased from authorised Toyota dealerships".
“The removal of the restrictions that prevented WesBank from financing vehicles will provide customers with a wider choice when selecting vehicle financiers to finance vehicles purchased from authorised Toyota dealerships,” Commissioner Doris Tshepe said.
The confirmation of this settlement agreement by the Tribunal concludes all proceedings between the Commission and the Respondents in relation to this matter.
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