Martin Endjala
The Namibian Competition Commission (NaCC) has concluded an investigation into the Municipal Council of Swakopmund, Rent-A-Drum Pty Ltd., and Molok OY Ltd. over alleged anti-competitive agreements that restrict market access and investment.
According to the NaCC, the trio entered into agreements that restrict competition by limiting or controlling production, market outlets or access, technical development, and investment in the relevant market.
Dina Gowases, the NaCC’s spokesperson, explained the nature of the allegations, stating that, as part of its long-term relationship with Rent-A-Drum, the Municipality of Swakopmund exclusively uses the Molok deep waste collection system.
“In this instance, reference to an agreement refers to the definition as described in the Act, which makes provision for “a contract, arrangement, or understanding, whether or not legally enforceable,” she said.
She said this system is proprietary, not compatible with other deep waste collection systems on the market, and 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 that is only supplied by a single company that is also solely responsible for its maintenance,” she said.
She added that Molok OY has appointed Rent-A-Drum as its sole distributor in the Namibian market.
According to Gowases, Molok OY often refuses to do business with Rent-A-Drum competitors and maintains that Rent-A-Drum is its sole distributor in Namibia.
“Based on this, the commission makes findings that the conduct 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,” she argued.
Gowases explained that the commission would accord the three companies an opportunity to make written submissions or indicate whether they would require an opportunity to make oral representations.
“While emphasising 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,” she said.
Questions and text messages sent to the Swakopmund municipality chief executive officer, Alfeus Archie Benjamin, went unanswered.
