By: Nghiinomenwa-vali Erastus
The Namibia Competition Commission has updated that it has received responses from Bank Windhoek and Dr. Weder, Kauta & Hoveka Inc. regarding allegations of exclusive dealings pertaining to property conveyance services.
The Commission has indicated that it is set to make its determination on the two entities’ conduct.
“Upon receipt of the responses to the allegations, the Commission will conduct an assessment and, stemming therefrom, determine the relevant cause of action,” read the Commission’s statement.
This follows an investigation Competition Watchdog initiated against law firm Dr. Weder, Kauta & Hoveka Inc., and Bank Windhoek in terms of Section 33 of the Namibian Competition Act following allegations of exclusive dealings on the property conveyance services.
The process of conveyance is the transfer and assignment of property rights or interests from one individual or entity (the conveyor) to another (the conveyee).
According to the Commission, it has received a complaint alleging that Dr. Weder, Kauta & Hoveka Inc., and Bank Windhoek entered into an Exclusive Service Level Agreement.
This includes the appointment of the firm Dr. Weder, Kauta & Hoveka Inc. as the exclusive and sole conveyancing attorneys for properties financed through Bank Windhoek.
It is alleged that this agreement requires Bank Windhoek property financing applicants to only make use of Dr. Weder, Kauta & Hoveka Inc.’s conveyancing services to the exclusion of other conveyancing service providers in the relevant market.
The Commission found that the agreement and its maintained exclusivity are said to limit competition and foreclose other independent service providers in the relevant market.
The alleged conduct of law firm Dr. Weder, Kauta & Hoveka Inc. amounts to a possible contravention of Section 23 (1) read with Section 23 (2) (b), and Sections 23 (3) (e) and 23 (3) (g), stated the Commission.
As for the alleged actions of Bank Windhoek in the agreement, they amount to a possible contravention of Section 23 of the Competition Act.
The Commission further updated that it has engaged all the affected parties and allowed them to respond to the allegations.
The Namibian Competition Commission is a regulatory body, established through an Act of Parliament – the Namibian Competition Commission Act – mandated to safeguard and promote competition within the Namibian market.
The Commission’s investigations into prohibited conduct comprise investigations into insurance, in which 82 respondents were identified. Investigations into pharmaceutical conduct showed more than 200 pharmacies fixing prices.
It has also investigated price fixing in the banking, automotive and telecommunications sectors
Prohibited conduct matters considered over the past 15 years have led to an estimated
N$54.4 million in fines imposed, according to the Commission’s updates. erastus@thevillager.com.na
