Competition Commission urges taxi operators to desist from price increase

The Namibian Competition Commission has advised taxi operators to desist from any price increase in the absence of endorsement by the Transport Board as such conduct would amount to prohibited price fixing in terms of the Competition Act.

Taxi operators who collusively and intentionally impose fixed taxi fare increase without following due process set out in the Road Transport Act will render themselves liable in terms of the Competition Act and thereby attract a formal investigation which may lead to punitive civil or criminal sanction, a press statement released by the Commission yesterday reads.

 “The Namibian Competition Commission notes that proposals have been made by certain taxi operators and their associates to collusively increase fares in the  absence of endorsement from the Transport Board as prescribed by the Transport Act, 74 of 1977, ( the Road Transport Act),” the statement reads.

The statement further reads that the Competition Act, Act 2 of 2003 prohibits competing undertakings such as taxi operators from jointly colluding on prices charged to consumers unless such conduct is authorized in terms of other relevant laws such as the Road Transport Act.

“It was on this basis that the Commission last year resolved not to proceed against Bus and Taxi Association for price fixing conduct as such conduct was authorized by the Road Transport Act,” the statement said.