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Competition Commission targets insurance companies and windscreen retailers

Competition Commission targets insurance companies and windscreen retailers

The Namibian Competition Commission announced that it has made a preliminary investigation into exclusive agreements between Insurance companies and Windscreen retailers.

This comes after the Commission’s investigation found that the insurance companies and windscreen retailers are engaged in a practice of exclusive dealing.

According to the commission these parties have done so by concluding agreements in terms of which the above-named windscreen retailers receive preference in supplying and fitting windscreens to vehicles insured by the above-mentioned insurance companies.

Various short-term insurance companies, in particular Santam Namibia Ltd, Hollard Insurance Company Ltd, Old Mutual Short-Term Insurance Company Ltd, and Momentum Short-Term Insurance Ltd (previously known as Quanta Insurance Ltd) entered into exclusive agreements with various windscreen retailers such as PG Glass (Pty) Ltd, Perfect Glass CC and Greg’s Motor Spares.

“These agreements therefore favour the above-named windscreen retailers over other windscreen retailers even in instances whereby the other windscreen retailers supply windscreens that are of similar quality as those provided by the preferred windscreen retailers,” the Commission said in a statement this week.

The Commission’s investigation therefore, concluded that the above-named insurance accompanies and the windscreen retailers have contravened the Competition Act by limiting market access and applying dissimilar conditions to equivalent transactions as envisaged in terms of section 23(1) read with section 23(2)(b) and 23(3)(e) and section 23(3)(f) of the Competition Act.

Meanwhile, an oral conference is scheduled for 31 October at which the affected parties are expected to make submissions to the Commission on its preliminary investigative findings before a final determination is made regarding whether or not the Commission will refer the matter to the High Court for remedial action as prescribed in the Competition Act.

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

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