AMS, a mining and tyre group, has informed the Competition Tribunal that it will file a withdrawal of its application for interim relief against alleged anti-competitive conduct by Kal Tire Mining Tyre Services SA, Malas and Apollo Tyres South Africa. The application arose from back-to-back exclusive supplier agreements which AMS alleges contravene the Competition Act.
The move follows a barrage of opposition from the tyre manufacturing companies. AMS conceded that it had not been adequately prepared for its interim relief application and, instead of withdrawing it outright, had sought postponements to address discrepancies in its papers.
AMS had sought interim relief pending the final determination of a complaint it lodged with the Competition Commission.
The mining and tyre company, which in 2024 acquired OTR Jasebenza to expand into the open-cast mining sector, had applied to the Tribunal for an order compelling competitor Kal Tire to refrain from inducing Apollo not to deal with it. It also sought to have the exclusivity provision in the distribution agreement between Malas and Apollo set aside.
AMS further sought an order obliging Apollo to supply all sizes of its underground mining (UMS) tyres to AMS on terms no less favourable than those offered to Malas and/or Kal Tire, and to prohibit Kal Tire, Malas and Apollo from engaging in conduct alleged to contravene specific sections of the Competition Act.
In submissions on Tuesday, AMS’s legal representatives said there had been material developments in the market since the affidavits were filed, particularly regarding product availability.
They said Apollo tyres and other brands now had offerings acceptable to mining customers, altering the impact that availability — or lack thereof — had previously had on AMS’s ability to compete, especially in relation to some of its most important clients.
“Now that late December has passed, the position is not as representative or as anticipated in the earlier affidavits. These are recent market dynamics,” AMS submitted.
“We concluded that it is necessary to clarify or correct certain figures in the application papers and to introduce evidence that has come to light since the filing of the affidavits.”
AMS said some of the facts and figures contained in the affidavits were inaccurate, and it did not believe the Tribunal should make findings based on incorrect information.
“It also appears from engagements with clients that there have been material developments in the market since the affidavits were filed, particularly regarding the availability of Apollo tyres and other tyres acceptable to certain mining customers, and the impact that availability has had on AMS’s ability to compete,” the group said.
Representatives of Kal Tire Mining Tyre Services SA, Malas and Apollo Tyres South Africa argued that AMS had not been prepared for the application and had been reluctant to withdraw it outright due to the cost implications for all parties.
The Tribunal adjourned without making any determinations on the submissions.
Information received after the close of business indicated that AMS had “confirmed it will file a withdrawal of its current application and may apply for interim relief again in due course.”
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