Competition watchdog fines Greg’s
PHILLEPUS UUSIKU
Greg’s Motor Spares, a Windhoek-based company with branches countrywide, has agreed to pay the Namibian Competition Commission (NaCC) a total of N$1.25 million in penalties and costs for anti-competitive behaviour.
NaCC investigated Greg’s Motor Spares and found it entered into exclusive agreements which affords preferential rights, sole distribution rights, waiving of excess fees and rebates. As such the company contravened section 23(1) of the Competition Act.
Greg’s Motors Spares admitted that its conduct constituted “an unintended contravention” of the act.
Hence, both parties agreed on 20 January 2022 to settle the investigation and high court proceedings in a full and final settlement.
Greg’s Motors Spares has ceased its conduct and shall take all necessary steps to ensure that it does not engage in such conduct in future.
In addition, the company will develop and implement a compliance programme on competition law in Namibia to ensure that its employees, management, directors or any other party acting on its behalf does not engage in any conduct that is prohibited in terms of the act.
A copy of the compliance programme will be supplied to the commission within sixty days of the date of confirmation of the consent agreement as an order of court.
They will further prepare a statement summarising the content of the consent agreement to its employees who are in management within thirty days of the date of the confirmation of this consent agreement as an order of the court and shall provide the NaCC with a copy thereof within days of the date of the confirmation of this consent agreement as an order of the court.
Measures
Greg’s Motors Spares shall act in accordance with the terms of this consent agreement and shall review all its policies, practices and operations by way of internal audits.
In addition, Greg’s Motors will also be expected to invest in the education of its staff on an ongoing basis on matters pertaining to competition law compliance in Namibia.
Furthermore, they should actively engage the commission by obtaining advisory opinions to assist in identifying and implementing best practices and implement a zero-tolerance policy towards anti-competitive behaviour by its staff.
Greg’s Motors agreed to pay a total settlement amount of N$1.25 million, of which N$875 000 is a pecuniary penalty and N$375 000 for purposes of covering part of the Commission’s costs arising from its Investigation.
The above amounts become payable upon confirmation of the consent agreement as an order of the court, in three instalments, with the first instalment being payable within four months from the date of this consent agreement being made an order of the court.
The second instalment is payable within eight months from the date of this consent agreement being made an order of the court, and the third and final instalment is payable within twelve months from the date of the consent agreement being made an order of the court.
The consent agreement is conditional upon it being confirmed as an order of the court. Should the court not confirm the consent agreement, all terms of the consent agreement shall lapse and have no force and effect and will not be used as evidence against Greg’s Motors Spares in any proceeding whatsoever.
All efforts by Market Watch to get comments from Greg’s Motors Spares before deadline were [email protected]
Greg’s Motor Spares, a Windhoek-based company with branches countrywide, has agreed to pay the Namibian Competition Commission (NaCC) a total of N$1.25 million in penalties and costs for anti-competitive behaviour.
NaCC investigated Greg’s Motor Spares and found it entered into exclusive agreements which affords preferential rights, sole distribution rights, waiving of excess fees and rebates. As such the company contravened section 23(1) of the Competition Act.
Greg’s Motors Spares admitted that its conduct constituted “an unintended contravention” of the act.
Hence, both parties agreed on 20 January 2022 to settle the investigation and high court proceedings in a full and final settlement.
Greg’s Motors Spares has ceased its conduct and shall take all necessary steps to ensure that it does not engage in such conduct in future.
In addition, the company will develop and implement a compliance programme on competition law in Namibia to ensure that its employees, management, directors or any other party acting on its behalf does not engage in any conduct that is prohibited in terms of the act.
A copy of the compliance programme will be supplied to the commission within sixty days of the date of confirmation of the consent agreement as an order of court.
They will further prepare a statement summarising the content of the consent agreement to its employees who are in management within thirty days of the date of the confirmation of this consent agreement as an order of the court and shall provide the NaCC with a copy thereof within days of the date of the confirmation of this consent agreement as an order of the court.
Measures
Greg’s Motors Spares shall act in accordance with the terms of this consent agreement and shall review all its policies, practices and operations by way of internal audits.
In addition, Greg’s Motors will also be expected to invest in the education of its staff on an ongoing basis on matters pertaining to competition law compliance in Namibia.
Furthermore, they should actively engage the commission by obtaining advisory opinions to assist in identifying and implementing best practices and implement a zero-tolerance policy towards anti-competitive behaviour by its staff.
Greg’s Motors agreed to pay a total settlement amount of N$1.25 million, of which N$875 000 is a pecuniary penalty and N$375 000 for purposes of covering part of the Commission’s costs arising from its Investigation.
The above amounts become payable upon confirmation of the consent agreement as an order of the court, in three instalments, with the first instalment being payable within four months from the date of this consent agreement being made an order of the court.
The second instalment is payable within eight months from the date of this consent agreement being made an order of the court, and the third and final instalment is payable within twelve months from the date of the consent agreement being made an order of the court.
The consent agreement is conditional upon it being confirmed as an order of the court. Should the court not confirm the consent agreement, all terms of the consent agreement shall lapse and have no force and effect and will not be used as evidence against Greg’s Motors Spares in any proceeding whatsoever.
All efforts by Market Watch to get comments from Greg’s Motors Spares before deadline were [email protected]
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