Africa-Press – Namibia. THE Namibian Competition Commission (NaCC) has fined five pharmaceutical companies and a windscreen retailer for more than N$1 million after investigations into alleged anti-competitive behaviour concluded they were engaged in exclusive dealings.
According to the NaCC, the companies entered agreements to pay the fines that were imposed between November 2022 and January this year.
These agreements provide a breakdown of the fines as well as compliance requirements for the concerned parties.
The commission has found that the Pharmaceutical Society of Namibia (PSN) and close to 180 pharmacies contravened the Namibian Competition Act through price fixing.
In the case of the windscreen retailer PG Glass was a respondent in an investigation regarding agreements between insurance companies and some windscreen suppliers.
The pharmaceutical companies and windscreen retailers’ cases are currently before the High Court of Namibia for litigation, with only one respondent remaining on the windscreen matter.
In terms of Section 40 of the Namibian Competition Act, the commission can enter settlement/consent agreements with undertakings, setting out the terms to be submitted by the commission to the High Court of Namibia for confirmation as an order of the court.
The commission has found that PG Glass has contravened the act by entering into exclusive agreements which afford the company preferential rights, sole distribution rights, and which waive excess fees and rebates to PG Glass.
PG Glass admitted its conduct constituted an unintended contravention of Section 23 of the act, and the two parties entered a consent agreement on 29 November 2022.
The company agrees to pay a total settlement amount of N$750 000, of which N$500 000 is a penalty, and N$250 000 to cover the commission’s costs incurred in the investigation.
On 6 December 2022 Beulah Pharmacy CC was found to have engaged in anti-competitive behaviour by fixing prices through the imposition of a 50% mark-up on dispensing medicine through its professional association with other members.
The pharmacy agreed to pay a total of N$40 000, with a penalty of N$30 000, and N$10 000 to cover the commission’s investigation costs.
CeCe Otjo Pharmacy CC also fixed prices through imposing a 50% mark-up on dispensing medicine through its professional association with other members.
On 16 December 2022 CeCe Otjo agreed to pay N$85 000, with a penalty of N$59 500, and N$25 500 to cover the commission’s investigation costs.
Chrismed Pharmacy was found to have engaged in price fixing through the imposition of a 50% mark-up on dispensing medicine.
The company agreed on 18 January to pay N$15 000, comprising a penalty of N$10 500, and N$4 500 to cover the commission’s investigation costs.
JN Hyper Pharmacy CC was found guilty of fixing prices through the imposition of a 50% mark-up on the dispensing of medicine. The company agreed to pay N$60 000, with a penalty of N$42 000, and N$18 000 to cover the investigation costs.
Medimart Pharmacy also admitted to fixing prices and agreed to pay N$65 000, with a pecuniary penalty of N$45 500, and N$19 500 to meet investigation costs.
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