MiX Telematics faces prosecution for alleged cartel conduct

Read time 2min 40sec

Johannesburg Stock Exchange-listed MiX Telematics, together with some other fleet telematics solution providers, has been charged by the Competition Commission for allegedly engaging in cartel conduct.

The commission has referred to the Competition Tribunal for prosecution fleet management solutions suppliers Mix Telematics Africa, Fleetco, Hyper Auto, Soltrack and Tectra Telematics for cartel conduct.

The firms have been charged with alleged market division by allocating customers in the market for the provision of value-added fleet management solutions in contravention of the Competition Act, the commission says.

It adds this follows an investigation initiated by the commissioner on 8 November 2016.

The commission's investigation found that between at least 1998 to date, MiX has had an agreement with Fleetco, Hyper Auto, Soltrack and Tectra Telematics that it would refrain from approaching their customers.

"This conduct amounts to market division by allocating customers in contravention of the Competition Act," the commission says.

The commission has asked the tribunal to impose an administrative penalty of 10% on the turnovers of MiX Telematics Africa, Hyper Auto, Soltrack and Tectra Telematics.

Market analyst firm Berg Insight ranks Cartrack and MiX Telematics as the largest providers of fleet management solutions in SA, both having estimated installed bases of more than 200 000 active units in the country.

MiX Telematics is a global provider of fleet and mobile asset management solutions delivered as software-as-a-service to customers in more than 120 countries.

Its shares are publicly traded on the Johannesburg Stock Exchange and New York Stock Exchange.

The company's products and services provide enterprise fleets, small fleets and consumers with solutions for safety, efficiency and security.

In its financial results for the third quarter of fiscal 2019, MiX Telematics' total revenue was R514.4 million, an increase of 16.3% compared to R442.1 million for the third quarter of fiscal 2018.

Hardware and other revenue was R75.5 million, an increase of 14.8% compared to R65.8 million for the third quarter of fiscal 2018.

The firm was founded in 1996 and has offices in SA, UK, US, Uganda, Brazil, Australia and the United Arab Emirates, as well as a network of more than 130 fleet partners worldwide.

It claims that over 700 000 mobile assets - from trucks and buses, to vans, cars, motorbikes and trailers - are actively managed by MiX Telematics.

In a statement sent to ITWeb, Gert Pretorius, MD of MiX Telematics Africa, comments: "We are currently studying the content from the commission's complaint referral to the tribunal, received by our team late yesterday afternoon. We have worked closely with our legal advisors during this process and strongly believe that the complaint referral from the commission is without merit. A media statement will be issued later today."

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