The regulator claims smaller repair shops paid up to 50% more than larger rivals for identical services.
The Competition Commission has referred auto software company Audatex to its Tribunal over claims that the firm charged smaller assessors and repair shops significantly higher fees than larger firms for using its platform to generate vehicle repair estimates.
The company provides a popular software platform that is used by insurers, repair shops, and claimants.
According to its website, Audatex processes 81% of all insurance claims in South Africa and has operated locally for 40 years. The company is a subsidiary of US-based Solera, which specialises in technology for vehicle claims, repairs, and fleet management.
Following a complaint in January 2025, the Competition Commission said its investigation found that Audatex had applied a “price differential structure” between 2020 and 2024, which had given larger films a competitive advantage.
The investigation found that smaller assessors and repairers and those separated by historically disadvantaged persons (HDPs) paid up to 50% more than larger films for the same services — exceeding the threshold for permissible price differences.
“Under this structure, customers generating higher volumes of assessment quotes benefit from lower per-quote fees, while smaller firms pay disproportionately more for the same service. A volum- based price differential does not justify price discrimination against small and medium businesses or those owned by HDPs,”
the Commission said.
The Commission found that the alleged conduct arose in a context where Audatex appears to hold a strong position in the market for fully automated repair estimation software.
The Commission has recommended that the Tribunal impose a fine of up to 10% of Audatex’s annual turnover.
In terms of Section 9 of the Competition Act, price discrimination is illegal if the seller has market dominance (typically a market share of 35% or higher), when the same services are delivered, and when it makes it hard for small and medium enterprises to compete.
Source: News24
