The Namibian Competition Commission (NaCC) has collected more than N$1 million in settlement agreements emanating from alleged anti-competitive behaviour by five pharmaceutical companies and one windscreen retailer.

The affected parties engaged the commission after investigations concluded that these entities were engaged in exclusive dealings. These agreements were imposed between November 2022 and January 2023. 

In a statement issued on Wednesday, the NaCC appreciated the fact the parties made use of the opportunity provided to them in terms Section 40 of the Competition Act and resorted to an amicable resolution to investigations against them. The commission further encouraged parties interested in exploring an opportunity to approach NaCC for possible resolution in order to avoid costly litigations.

The settlement amounts imposed on the five pharmacies are a result of the Commission’s investigation which 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 retail sector, PG Glass, was a respondent in the investigation regarding agreements between insurance companies and some windscreen suppliers. Both 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.

The NaCC is mandated to enter settlement and consent agreements with an undertaking or undertakings concerned, setting out the terms to be submitted by the commission by application to the High Court of Namibia for confirmation as an order of the court. 

“The agreements, upon confirmation as an order of the Court, shall be in full and final settlement of the investigation and shall conclude the proceedings,” the commission added. 

After the commission found that PG Glass contravened the Competition Act by entering into exclusive agreements which affords preferential rights, sole distribution rights, waiving of excess fees and rebates, the company agreed to pay N$750 000. 

In addition, the five pharmacies, Beulah Pharmacy, CeCe Otjo Pharmacy, Chrismed Pharmacy, JN Hyper Pharmacy and Medimart Pharmacy all agreed to pay between N$85 000 and N$15 000. These settlements were for alleged anti-competitive behaviour resulting from price fixing.