Five pharmacies and one windscreen retailer have agreed to pay penalties to the Namibian Competition Commission (NaCC). This is after the NaCC’s investigations determined the companies engaged in anti-competitive behaviour through exclusive dealings. These penalising agreements were imposed between November 2022 and January 2023.
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 Namibia’s competition legislation through price fixing.
“The commission appreciates the fact that parties make use of the opportunity provided to them in terms Section 40 of the Competition Act and resort to an amicable resolution to investigations against them. Furthermore, the commission encourages parties that are interested in exploring this opportunity to approach it for possible resolution in order to avoid costly litigations,” read a statement from NaCC spokesperson Dina //Gowases.
PG Glass
Windscreen retailer PG Glass was investigated for 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.
NaCC’s investigation found that PG Glass broke the law by entering into exclusive agreements which afforded preferential rights, sole distribution rights, waiving of excess fees and rebates to PG Glass.
PG Glass admitted that its conduct constituted an unintended contravention of Section 23 of the Act and entered into a consent agreement on 29 November 2022. The company agreed to pay a total settlement amount of N$750 000, which includes covering part of the commission’s costs arising from its investigation.
Pharmacies
Meanwhile, a number of pharmacies entered into consent agreements with the NaCC after it was found that they engaged into anti-competitive behaviour by price fixing through the imposition of a 50% mark-up on the dispensing of medicine through its professional association with other members. They are Beulah Pharmacy, CeCe Otjo Pharmacy CC, Chrismed Pharmacy, JN Hyper Pharmacy CC and Medimart Pharmacy, all of whom agreed to pay settlement amounts.