Maxes, Riso enter into settlement agreements
With the Namibian Competition Commission
Maxes Office Machines and Riso Africa will both pay a total amount of N$341 601.12 each for anticompetitive conduct.
Maxes Office Machines (Pty) Ltd, a distributor of office printing equipment in Namibia, and one of its suppliers, Riso Africa (Pty) Ltd have entered into settlement agreements with the Namibian Competition Commission (NaCC).
The two entities were being investigated for alleged anticompetitive behaviour and the investigations revealed that they entered into an exclusive distributorship agreement.
The Commission found that the concerned parties contravened Section 23(1) read with Sections 23(2)(b) and 23(3)(e) of the Namibian Competition Act No.2 of 2003 (the Act) by entering into an exclusive agreement which afforded sole distribution rights of Riso related products in Namibia to Maxes.
Although the two parties disputed the factual findings and interpretation of the Act by the Commission, they admitted that their conduct constituted an unintended contravention of Section 23 of the Act. Therefore, the parties agreed to settle the matter on the terms and conditions set out in the consent agreements.
Maxes on the 21st of April 2023 entered into a consent agreement with the Commission to pay a total settlement amount of N$341 601.12. The amount comprises of the following:
Firstly, a pecuniary penalty of N$273,280.90 and secondly a portion of the Commission’s costs incurred as a result of the investigation and subsequent process in the amount of N$68 320.22.
Similarly, Riso Africa on the 21st of April 2023 entered into a consent agreement with the Commission, for a total settlement amount of N$341 601.12.
This includes a pecuniary penalty of N$273 280.90 and a portion of the Commission’s costs incurred as a result of the investigation and subsequent process in the amount of N$68 320.22.
The payments shall be made within 24 months after confirmation of these Consent Agreements as orders of the High Court.
In terms of Section 40 of the Namibian Competition Act, No. 2 of 2003, the Commission is mandated to enter into settlement agreements with any 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 two entities were being investigated for alleged anticompetitive behaviour and the investigations revealed that they entered into an exclusive distributorship agreement.
The Commission found that the concerned parties contravened Section 23(1) read with Sections 23(2)(b) and 23(3)(e) of the Namibian Competition Act No.2 of 2003 (the Act) by entering into an exclusive agreement which afforded sole distribution rights of Riso related products in Namibia to Maxes.
Although the two parties disputed the factual findings and interpretation of the Act by the Commission, they admitted that their conduct constituted an unintended contravention of Section 23 of the Act. Therefore, the parties agreed to settle the matter on the terms and conditions set out in the consent agreements.
Maxes on the 21st of April 2023 entered into a consent agreement with the Commission to pay a total settlement amount of N$341 601.12. The amount comprises of the following:
Firstly, a pecuniary penalty of N$273,280.90 and secondly a portion of the Commission’s costs incurred as a result of the investigation and subsequent process in the amount of N$68 320.22.
Similarly, Riso Africa on the 21st of April 2023 entered into a consent agreement with the Commission, for a total settlement amount of N$341 601.12.
This includes a pecuniary penalty of N$273 280.90 and a portion of the Commission’s costs incurred as a result of the investigation and subsequent process in the amount of N$68 320.22.
The payments shall be made within 24 months after confirmation of these Consent Agreements as orders of the High Court.
In terms of Section 40 of the Namibian Competition Act, No. 2 of 2003, the Commission is mandated to enter into settlement agreements with any 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.
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