The South Gauteng High Court has ordered PG Group to stop disparaging a competitor that has been gaining market share with imported and cheap Chinese-made windscreens, BDLive reports.
Grandmark International imports distributes and sells vehicle parts - including windscreens - under its trade name Grandmark Glass. It approached the court after PG Group embarked on a campaign describing Grandmark's windscreens as inferior, unsafe and poor quality "Chinese imported glass."
Judge Moroa Tsoka said PG Group's contention was unsupported by facts. "It is speculation [which] cannot amount to the truth PG Group contends for." He said PG Group's "motive is glaringly obvious," it was afraid of competition and, realising that Grandmark is making its mark in the insured market, it embarked on its unlawful activities. "Its conduct is anticompetitive and unconstitutional," Judge Tsoka said - and granted Grandmark an interim interdict.
PG Group CEO Stewart Jennings is also chairman of the Manufacturing Circle, which represents some of South Africa's largest manufacturers. The Circle has been lobbying the government to adopt measures to slow down the influx of Chinese imports. Jennings told BDLive that he was studying the judgment and would comment later.
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Posted on 5 Dec 2012 11:16