JAKARTA – It is revealed that two air conditioner (AC) manufacturers are being investigated for allegedly splitting the portion for AC system in cars.

Based on the information disclosure of Indonesia Competition Commission (lit. Komisi Pengawas Persaingan Usaha/KPPU) quoted Monday (30/1), Denso Corporation and Sanden Corporation have filed a petition of behaviour change in the Preliminary Investigation Hearing following the allegation of violation of Act No.5/1999 regarding the Prohibition of Monopolistic Practices and Unhealthy Business Competition.

Both AC manufacturers are suspects of the violation of Article 9 regarding the procurement of AC system in cars and its component units for car manufacturers. They are said to have scheduled a meeting on June 22, 2022, to split the AC market evenly for D80N (Ayla) in Indonesia and D87A (Axia) in Malaysia.

After said meeting, both AC manufacturers promised each other not to aggressively market their own products in another’s territory. Denso then dominated AC systems in Ayla in 2011, while Sanden was the one that covered AC systems in Axia in Malaysia in 2013. (LK/ZH)