Commerce

Comesa branch probes Toyota sales

Wednesday, July 6th, 2022 01:52 | By
PHOTO/COURTESY

Consumer protection arm of the Common Market for Eastern and Southern Africa (COMESA) has commenced investigations on automaker Toyota Tsusho Corporation to determine whether it contravened established protocols.

The move follows allegations that Toyota is operating against the competition regulations article 16, in the common market. 

Comesa’s watchdog is accusing Toyota of appointing authorised agents in various countries in the region while at the same time concluding distribution agreements with them for the sale of Toyota products, specifically, brand new vehicles and spare parts.

Chief Executive Officer of COMESA Competition Commission Dr. Willar Mwemba says the article prohibits any agreements that may affect trade between member states by restriction or distortion of competition.

Concerns of higher prices

“The commission has preliminary concerns that Toyota may be prohibiting out-of-territory passive sales to the detriment of consumers and may also be maintaining high prices of brand new vehicles and spare parts in the Common Market,” said the authority in a statement.

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