Competition Commission warns taxi operators against unauthorised price increases
The Namibian Competition Commission urged taxi operators to desist from any price increases in the absence of endorsement by the Transportation Board as such conduct would amount to prohibited price fixing in terms of the Competition Act.
This comes after proposals have been made by certain taxi operators and their associations to increase taxi fares by 50% in the absence of endorsement from the Transportation Board as prescribed by the Road Transport Act, 74 of 1977.
According to a statement released by the commission this week, 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 authorised in terms of other relevant laws such as the Road Transport Act.
Moreover, it was on this basis that the Commission last year resolved not to proceed against Bus and Taxi Associations for price fixing conduct as such conduct was authorized by the Road Transport Act.
“Taxi operators who collusively and intentionally impose fixed taxi fare increases without following the 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 and/or criminal sanctions,” the statement read.