South Africa: Competition Commission Gazettes Device Repair Guidelines

The Competition Commission says greater competition in repair markets could result in more affordable repairs. The Competition Commission (CompCom) has issued final guidelines aimed at opening up the repair and maintenance markets for devices, including mobile phones, tablets, gaming consoles and other consumer electronics. Gazetted under section 79 of the Competition Act, the Guidelines on Repair, Service and Maintenance Aftermarkets are intended to give consumers greater choice over where and how they repair products, while creating more room for independent repair businesses to compete with authorised service providers. The guidelines also cover televisions and other audio-visual equipment, household appliances, medical equipment and devices, as well as backup water and electricity systems. According to the CompCom, a key focus is access to the parts, information and tools needed to repair devices once they are in consumers’ hands. The commission says consumers can face limited repair choices when manufacturers restrict access to spare parts, technical information or diagnostic tools, effectively making the manufacturer or its authorised repair network the only option. Such restrictions can increase repair costs and make it harder for independent repairers to compete, it adds. Potentially harmful practices identified by the commission include blocking independent repairers from accessing spare parts or repair information, preventing them from entering or expanding in the market, and pressuring consumers not to use independent repair businesses. The CompCom notes the guidelines are particularly relevant to devices such as smartphones and tablets, where repairs can involve proprietary components, diagnostic software and manufacturer-specific technical information. The commission says greater competition in repair markets could result in more affordable repairs and a wider choice of service providers, while allowing consumers to keep devices in use for longer. It believes it could also support the growth of small repair businesses, expand the market for refurbished products and encourage new repair solutions. The guidelines apply mainly where consumers pay for repairs because the work is not covered by a statutory, implied or express warranty. They can also apply during a warranty period where the particular repair is not covered by the warranty. Motor vehicles are excluded, as they are already covered by the commission’s Guidelines for Competition in the South African Automotive Aftermarket. The commission stresses that the guidelines do not introduce new obligations beyond those contained in the Competition Act. Instead, they provide manufacturers, original equipment manufacturers and repair businesses with greater clarity on practices that could restrict competition. It points out that restrictions may, however, be justified in certain circumstances, including for consumer safety, technological improvements or efficiencies, protection of intellectual property or compliance with other laws. The commission says it will assess complaints on a case-by-case basis and determine whether conduct potentially contravenes sections 5, 8 or 9 of the Competition Act. It encourages independent repairers to report instances where original equipment manufacturers allegedly frustrate their ability to provide repair, service or maintenance services. The commission's guidelines follow public consultation with businesses and other stakeholders across several sectors.