The Competition Tribunal yesterday found three vehicle-tracking companies and the industry's representative body guilty of anti-competitive behaviour.

The tribunal found that Netstar, Matrix Vehicle Tracking, and Tracker Network - representing more than 90% of the industry - and the Vehicle Security Association of SA contravened the Competition Act by setting standards that created barriers to entry to the industry by other companies.

This denied consumers the benefit of competition, such as lower prices, greater choice and technological development.

The tribunal found the standards had exclusionary, self-serving and irrational.

The case was brought to the tribunal by the Competition Commission and the company Tracetec.

Tracetec wanted to enter the stolen-vehicle recovery market in which it believed its radio-transmitter technology could be successfully applied.

But, because of the industry standards, Tracetec was prevented from entering the market.

The Vehicle Security Association is an industry body for companies in the vehicle-security market and sets standards for its members.

Based on the evidence, the tribunal concluded that it was not possible for a company to enter the market without the approval of the association.

This was because none of the big short-term insurance companies would approve a the installation by a client of a system that did not have the association's approval.

The tribunal said that the SA Insurance Industry Association, representing all the large insurers, controlled a large part of the industry and set standards not for the benefit of the consumer but to protect its own business interests.

The relief being sought by both the commission and Tracetec was limited to a declaration that the conduct of the association was a prohibited practice - that its conduct was anti-competitive.

This declaration would enable a rival company to institute a civil action for damages against the respondents.

But no administrative penalty could be exacted because the complaint was made under a section of the act in which there is no provision for a fine to be imposed for a first-time contravention.

All four defendants were declared liable for the costs of Tracetec.

Riette Botha, managing director of MiX Telematics, the JSE-listed company under which Matrix Vehicle Tracking falls, said the company was extremely disappointed with the tribunal's ruling. MiX Telematics' participation in setting the standards imposed by the Vehicle Security Association for the vehicle-tracking industry was found to constitute anti-competitive behaviour.

The company was considering its options, including an appeal to the Competition Appeal Court, she said.

"We would like to stress again that our participation [in setting] Vesa's standards was done in good faith at the request of the insurance industry in order to help protect both the insurance companies and the public against fly-by-night operators," said Botha.