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Audatex, a multinational group that provides software and data solutions to the vehicle and insurance industries, is facing serious allegations in South Africa of discriminatory pricing against entities owned by historically disadvantaged people operating as assessors and repairers in the motor vehicle industry.The Competition Commission is now seeking to have Audatex docked 10% of its annual revenue by the Competition Tribunal. The commission found the company, which is primarily used by motor body shops, insurers and fleet managers to calculate vehicle repair costs and streamline insurance claims, discriminated against companies owned by historically disadvantaged persons.“Audatex’s alleged conduct affected small and medium enterprises and firms owned by historically disadvantaged persons operating as assessors and repairers in the motor vehicle industry,” the commission said on Friday, adding that the alleged price-discriminatory conduct occurred between 2020 and 2024, while it has good cause to believe the practice is ongoing.Read: After rand-rigging case that took 10 years to collapse, banks fume“Audatex applies a differential pricing structure for its repair estimation software. Under this structure, customers that generate higher volumes of assessment quotes benefit from lower per-quote fees, while smaller firms pay higher fees for equivalent services.“A volume-based price differential is not a defence to price discrimination against small and medium businesses or firms owned by historically disadvantaged persons, and the price differentials exceed the commission’s safe harbour threshold of 10%, with evidence indicating that customers from some smaller firms paid 50% or more than the average price charged to larger customers.”Through its four lines of business — vehicle claims, vehicle repairs, vehicle solutions, and fleet solutions — Audatex has been operating in South Africa for more than 40 years.According to the company’s website, Audatex processes 81% of all insurance claims in South Africa, with an extensive database covering more than 17-million records with 1,349 models and 2,083 original equipment manufacturer repair tips (official, factory-backed guidelines and procedures for fixing a vehicle).“In the competitive world of automotive data, staying ahead means having access to the most comprehensive and reliable information available. This is where Audatex South Africa shines as the undisputed leader, setting new standards with its industry-leading model coverage. Offering an incredible 34.1% more coverage than competitors, we don’t just raise the bar — we define it,” the company describes itself on its website.It is this dominant position that the commission believes put Audatex in a position to implement discriminatory pricing to the detriment of businesses owned by the previously disadvantaged. “The commission found that alleged conduct arises in a context where Audatex appears to hold a strong position in the market for fully automated repair estimation software. This position appears to have enabled it to implement differential pricing structures,” the commission said.“The commission found that these pricing practices may have placed SMEs and firms owned by historically disadvantaged persons at a competitive disadvantage and impeded their ability to participate effectively in the market.”Audatex could not be reached for comment by the time of going to print.
