Victron Energy fined R14m for anti-competitive practices
20 Jun 2024
The Competition Commission has concluded a settlement agreement with Victron Energy, a manufacturer of electric power inverters and related products. The settlement, valued at R14.2m, comes after allegations of minimum resale price maintenance, a practice that stifles competition and harms consumers.
The Competition Commission has sent a powerful message to the inverter market.
During their investigation, the Commission found that Victron had been enforcing a policy that prevented retailers from offering discounts on their products.
This limited consumer choice and led to inflated prices, making it harder for people to access essential energy products.
While Victron has not admitted to any wrongdoing, the company has agreed to pay the settlement amount and implement a comprehensive competition law compliance programme that aims to educate employees, management, and agents about fair competition practices and ensure adherence to South African antitrust laws.
Strong message to industry
With this victory the Competition Commission is sending a strong message to other companies operating in the energy sector.
The R14.2m fine is the largest ever imposed in a minimum resale price maintenance case in South Africa, highlighting the severity of Victron's alleged misconduct.
The Competition Commission's actions are not only protecting consumers but also promoting a fair and transparent market, which is crucial for the growth and development of the energy sector in South Africa.
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