South Africans will be able take their cars for repairs at any service provider from today, says the Competition Commission.
The commission's Guidelines for Competition in the South African Automotive Aftermarket came into effect on Thursday, bringing a decade of allegations of anti-competitive behaviour in the aftermarket value chain to an end.
Some of these allegations were that original equipment manufacturers (OEMs) and approved motor body repairers had exclusionary agreements which cut out independent service providers from service, maintenance and in-warranty vehicle repairs; that there was unfair allocation of work by insurers; and that there were high barriers to entry for smaller business. Independent service providers were also allegedly restricted from selling original spare parts.
Since 2017, the Competition Commission has been working with the industry to resolve these problems. But industry stakeholders could not agree on pro-competitive changes that could address the allegations and complaints.
This resulted in the commission putting together the guidelines, which enable vehicle owners to fix or maintain their vehicles with service providers of their choice instead of having to rely on dealerships.
In terms of the guidelines, they can also shop around for affordable rates - and smaller business owners, including previously disadvantaged people, can also benefit from the business they bring.
The commission composed the guidelines in terms of the Competition Act.
"These Guidelines are in line with the Commission's strategy of opening up markets to support growth and transformation.
"We urge the OEMs and insurers to embrace the guidelines and comply as this asks them to do no more than what they already do in their home countries and other parts of the world," said Competition Commissioner Tembinkosi Bonakele in a statement on Thursday.