The Namibian Competition Commission (NaCC) has fined Choppies Supermarket N$2.2 million for failing to notify the regulator of a merger involving Grootfontein Supermarket and Grootfontein Bottle Store.
NaCC Corporate Communications Practitioner Dina //Gowases said Choppies violated Chapter 4 of the Competition Act, Act No. 2 of 2003.
“The investigation revealed that Choppies entered into a memorandum of agreement on 12 May 2022, and 19 May 2022, respectively. This constituted an acquisition and a change of control under the Competition Act,” she said.
The merger fell within the notification thresholds prescribed by the Act, but Choppies did not inform the Commission, as required by Section 44.
This omission led to the imposition of the penalty and a requirement for Choppies to implement a compliance programme on competition law in Namibia.
//Gowases emphasised that while the transaction did not significantly impact market competition in Grootfontein due to the existing market concentration at the time, it still triggered the notification thresholds.
“The fine underscores the Commission’s commitment to ensuring that all mergers are notified to protect consumers and maintain a fair competitive landscape,” she explained.
The market in question, categorised as fast-moving consumer goods, includes essential products like food, beverages, and cleaning supplies.
“These economic activities have a day-to-day bearing on every Namibian. The Commission’s investigations are not punitive but aim to promote fair competition for inclusive growth and development,” said //Gowases.
The settlement highlights the importance of preventative control in market regulation.
“Mergers must be assessed before implementation to avoid creating market structures conducive to anti-competitive behaviour. This ensures businesses do not gain undue market power to raise prices or reduce service quality,” //Gowases added.
The NaCC encourages stakeholders to seek advisory opinions if they are uncertain about the notifiability of their transactions.
“This process benefits consumers by preventing potential abuses of market dominance and safeguarding fair competition,” //Gowases said.
This follows a settlement agreement between the Commission and Choppies Supermarket Namibia, which was approved by the High Court of Namibia on 19 November 2024.
