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Technical Overview

Find out more about various legal documentation and technical divisions of the Commission

Frequently Asked Questions

COMPLAINTS GUIDELINES

The Namibian Competition Commission is mandated under Chapter 3 of the Competition Act 2 of 2003 to deal with anti-competitive behaviour within the Namibian economy. The Commission has powers to investigate complaints and make determinations on business conduct found to be contravening the provisions of the Act.

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Responses to Questions Concerning Rising Basic Commodity Prices

Basic commodity prices keep increasing. Is this not worrying the NaCC?

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FREQUENTLY ASKED QUESTIONS

As part of its strategic focus, the Commission engages the media to advocate its mandate and respond to pertinent questions on developments within the Commission. This section of the FAQs comprises some of the questions posed by the media, in this case, with regard to basic commodity prices, and the Commission’s response to such. Should you require more clarity with regard to the Commission’s responses, kindly contact the Economics & Research Division at 061-224622.

What are the benefits of competition?

1. Economic Benefits:

  • efficient resourc allocation
  • growth
  • innovation

 

2. Consumer Welfare Effects:

  • lower prices
  • better quality
  • greater choice

 

3. Governance:

  • less need for Government intervention
  • reduced regulation

Why do we have a Competition Act?

The overall objective of the Act (Act 2 of 2003) is to promote and safeguard competition in Namibia. The purpose of the Act is to:

  • promote the efficiency, adaptability and development of the Namibian economy;
  • provide consumers with competitive prices and product choices;
  • promoting employment and advance the social economic welfare of Namibians;
  • expanding opportunities for Namibian participation in world markets while recognizing the role of foreign competition in Namibia;
  • ensuring that small undertakings have an equitable opportunity to participate in the Namibian economy;
  • and promoting a greater spread of ownership, in particular to increase ownership stakes of historically disadvantaged persons.

In which instances is the Act not applicable?

  • (a) Collective bargaining activities or collective agreement negotiated or concluded in terms of the Labour Act, 1992 (Act 6 of 1992 as amended);
  • (b)Concerted conduct designed to achieve a non-commercial socio-economic objective;
  • (c)In relation to goods and services which the Minister, with the concurrence of the Commission, declares, by notice in the Gazette, to be exempt from the provisions of the Act. In this regard, (1) any undertaking or association may apply to the Commission to be exempted from the provisions of Parts I or II of Chapter 3, in respect of:
    (a) Any agreement or category of agreements;
    (b) Any decision or category of decisions;
    (c) Any concerted practice or category of concerted practices.
  • (2) An application for an exemption under Subsection (1) must
    (a) be made in the prescribed form and manner;
    (b) be accompanied by such information as may be prescribed or as the Commission may reasonably require.
  • (3) The Commission must give notice in the Gazette of an application received in terms of Subsection (1)
    (a) indicating the nature of the exemption sought by the applicant; and
    (b) calling upon interested persons to submit to the Commission, within 30 days of the publication of the notice, any written representations that they may wish to make in regard to the application.

What is the application of the Act?

The competition law applies to all economic activity within Namibia or having an effect in the country. Thus, it is the nature of the economic activity concerned and not the status of the operator or the form of intervention that dictates when the Act applies. The Act binds the State in so far as the State engages in trade or business for the production, supply or distribution of goods or the provision of any service, but the State is not subject to any provision relating to criminal liability. The Act also applies to the activities of statutory bodies, except in so far as those activities are authorized by any law.

What does the Commission seek to address?

The Commission is tasked with promoting competitive market conditions through investigation and prosecution of anti-competitive activities, reviewing and approving mergers and exemption applications, and disseminating information to businesses, consumers and other stakeholders.

Namibia’s competition law does not only cover the three major competition concerns of anti-competitive agreements, abuse of dominance and anti-competitive mergers, but it also takes into account the public interests provisions on protecting consumers by safeguarding competitive prices and product choices, as well as promoting employment and investment and advancing the social and economic welfare of Namibians. It also has special requirements of its economy, which are the protection and promotion of small undertakings as well as promoting a greater spread of ownership of historically advantaged persons.

What actions should the Commission undertake in terms of its mandate in order to promote and safeguard fair competition in the market place?

The Commission has wide powers with regard to monitoring, investigating and deciding on activities of business which are anti-competitive, as well as on mergers and acquisitions. It is further empowered through the relevant legal structures to decide on fines, penalties and remedial actions to be taken to correct anti-competitive behavior.

Is the Commission independent?

The Commission was established in terms of an Act of Parliament, the Competition Act 2 of 2003. It is independent in terms of executing its mandate but reports administratively to the Ministry of Trade and Industry.

Does the Commission collaborate with sectoral regulators?

In terms of Section 67, the Commission is under obligation to cooperate with sectoral regulators which have competition powers. The Commission has thus far concluded Memoranda of Understanding (MOUs) with the Communications Regulatory Authority of Namibia (CRAN), Namibia Ports Authority (Namport) and the Bank of Namibia (BoN). It should be noted that the MOUs are not aimed at sharing competition responsibilities. It is rather aimed at formalising cooperation to improve efficiency and avoid duplication of processes.

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