The Namibian Competition Commission (NaCC) says it has found that the Municipal Council of Swakopmund, Rent-A-Drum Pty, and Finnish firm, Molok OY could have engaged in uncompetitive behavior by entering into agreements that restrict competition in the deep waste collection market in Swakopmund.
“Based on the above, the Commission makes a finding that the conduct of the Respondents has adverse effects on competition and thus makes a proposed decision that the Respondents have contravened section 26(1) read with section 25(2)(a) of the Competition Act,†NaCC Spokesperson Dina //Gowases said.
She said the NaCC investigation had centered around the exclusive use of the Molok deep waste collection system by the Swakopmund Municipality, which is proprietary and incompatible with other deep waste collection systems, with the municipality only requesting Molok bags, which can only be sourced from Rent-A-Drum, the alleged sole distributor in Namibia.
“Furthermore, there are no generic alternatives available. In procuring deep collection bags, the Municipality specifically only requests suppliers for the Molok bags which can only be sourced from Rent-A-Drum. As such, the Municipality has introduced a product which is only supplied by a single company which is also solely responsible for its maintenance,†the NaCC Spokesperson said.
She said the alleged arrangement limits competition by giving Rent-A-Drum undue control over the market, with the NaCC willing to engage with the parties to resolve the matter without proceeding to formal charges.
“While emphasizing that a final decision has not been made in this matter, the Commission notes the provisions of Section 40 of the Competition Act and confirms its willingness to engage the Respondents to settle this matter and to avoid proceedings under Section 38 of the Competition Act, should that be an option they wish to pursue,†//Gowases said.
