The Namibian Competition Commission (NaCC) alleges that the Payments Association of Namibia (PAN) and several commercial banks colluded in price-fixing activities related to card transaction fees.
According to the Commission, the banks, which are competitors in the market, allegedly colluded with PAN to collectively set interchange fees, a practice deemed anti-competitive and prohibited by law.
NACC Corporate Communications Practitioner Dina //Gowases said Banco Atlantico Europa – Namibian Branch (Atlantico), Bank BIC Namibia (Bank BIC), Letshego Namibia t/a Letshego Bank Namibia (Letshego), Trustco Bank Namibia (Trustco), and NamPost t/a NamPost Savings Bank (NamPost) are, however, banks whose conduct did not amount to a contravention of the Competition Act, but may be affected by the Commission’s decision.
The Bank of Namibia (BoN), Namibia’s central bank, is also regarded as an interested party in the matter.
“The Commission has issued a 30-day ultimatum for the accused parties to respond and potentially face legal action if found guilty of violating competition regulations,” //Gowases said.
She said PAN and the mentioned commercial banks utilised the Payment Clearing House Card Schedule for settlement and clearing rules, including fixed interchange fees agreed among Namibian banks.
This practice persisted from at least 2014 until 2020 when an exemption application was granted with conditions.
“PAN and the relevant commercial banks have, in terms of this schedule, multilaterally agreed to interchange/settlement fees. According to the extract from “Schedule 5C” of the PCH, “there will be no bilaterally negotiated interchange fees between participants and that all participants will pay the interchange fee rates agreed to by the industry,” she said.
She noted that relief sought under Section 38 of the Competition Act includes declaring contraventions, restraining future conduct, imposing penalties up to 10% of turnover, ordering costs, and additional relief as deemed appropriate.
Furthermore, parties have the option to engage in settlement discussions under Section 40 to avoid formal proceedings.
