A seven-year-long complaint against three tracking companies has been put to bed after the Supreme Court of Appeal last week denied the Competition Commission permission to appeal a previous decision.
Rival vehicle tracking company Tracetec lodged a complaint in 2005 with the Competition Commission against Altech Netstar, Matrix Vehicle Tracking (now MixX Telematics) and Tracker Network, arguing they were cutting competitors out of the market. The three companies together control over 90% of the market.
Last February, the Competition Appeal Court overturned an April 2010 decision by the Competition Tribunal that found the three tracking companies guilty of breaking competition rules. The commission and Tracetec took that decision on appeal, but lost with costs on Friday.
Tribunal erred
The court order indicates the Supreme Court has denied both the commission and Tracetec permission to appeal the Competition Appeal Court's ruling. Costs have been granted to Altech Netstar, MixX Telematics and Tracker Network.
Altech CEO Craig Venter says the order vindicates the company. He says Altech has always believed the tribunal's ruling was “flawed”.
“Despite our subsequent successful appeal in the Competition Appeal Court of SA against the Competition Tribunal ruling and the Appeal Court setting aside the Tribunal's findings, the Competition Commission insisted on taking the matter to the Supreme Court of Appeal,” he says.
Altech Netstar MD Harry Louw is pleased this matter has finally been settled. “Altech Netstar does not engage in anti-competitive practices, and this decision ends the negative and erroneous perception that this long legal battle has caused to our good name.”
Cut out
Tracetec alleged the three companies and the Vehicle Security Association of SA (VESA) contravened the Competition Act by setting standards that created barriers to entry. Tracetec argued it had not been able to become VESA accredited, which meant it could not grow its business.
The tribunal ruled the three companies were preventing competition in the sector, and denying consumers lower prices. No penalty was imposed, but the ruling paved the way for a civil case to be brought against the respondents.
In February 2011, the Competition Appeal Court set aside the tribunal's ruling, dismissing it with costs. The commission lodged an appeal with the Supreme Court last April. The matter cannot be appealed further.
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