‘Competition Watchdog’ fines Old Mutual N$6 mln
The Namibian Competition Commission (NaCC) has fined Old Mutual Short-Term Insurance Company Namibia Ltd (OMSIC) N$6 million for ‘unintended’ anti-competitive practices in two separate incidents.According to NaCC spokesperson Dina //Gowases, the first investigation revealed that the insurer entered into exclusive agreements with contracted windscreen retailers, which amount to limiting market access or outlets, as well as applied dissimilar conditions to equivalent transactions. An amount of N$2 200 000 was imposed on OMSIC of which N$1 600 000 serves as a pecuniary penalty and an additional amount of N$600 000 for purposes of covering part of the Commission’s costs arising from its Investigation.
In the second investigation, the Commission found OMSIC to have engaged in the setting of mark-ups that the panel beaters should charge for repairs of vehicles insured by OMSIC as well as the setting of maximum rates that panel beaters should charge for their labour. An amount of N$3 800 000 was imposed on OMSIC, apportioned as a pecuniary penalty of N$2 800 000 and an additional amount of N$1 000 000 for purposes of covering part of the Commission’s costs arising from its investigation, //Gowases said.
Settlement
According to Old Mutual’s acting executive for marketing Ashante Manetti, they entered into settlement agreements with NaCC, effective 10 August 2022, to resolve litigation in respect of two High Court claims instituted by the Commission against OMSIC.
‘OMSIC has followed all legal procedures as set out in the Competition Act and has fully cooperated with the Commission throughout its investigations. Due consideration having been had to the potential outcomes in these matters, OMSIC believes that settling the matters outside of court proceedings is in the best interest of all stakeholders,” she added.
As a responsible business always acting in the best interest of our customers, we remain committed to ensure good governance, whilst strengthening our processes with increased focus on our customers, our environment, and communities in which we operate. OMSIC has further committed to following the subsequent procedures as set out in the Competition Act, Manetti said.