Fishing companies indicted for unfair pricing – Business

The Namibian Competition Commission (NaCC) has launched a second investigation into fishing companies for unfair pricing.

According to a statement released by the commission on Friday, some companies that own fishing vessels are setting unfair prices when negotiating fees for fishing rights.

“Fishing companies bought quotas at these minimum prices without negotiation through closed tenders, however, the companies imposed lower quota usage fees on fishing rights holders – well below the government’s minimum reserve price, instead of matching it or offering more,” says NaCC spokesperson Dina //Gowases.

She said the government introduced a government target fishing quota auction in 2020, with a minimum price of N$3,000 for freezing quotas and N$750 for wet quotas from 2021 to 2023.

For 2024, these prices have increased to N$3,500 and N$850 respectively.

However, when the companies under investigation negotiate with fishing rights holders, they allegedly set prices below the minimum price set by the government.

“The Commission is therefore of the view that, as a result of the companies’ conduct in negotiating the usage fees for horse mackerel quotas with fishing rights holders, while offering non-negotiable prices to the Government at the auction, the companies are engaging in potentially anti-competitive conduct by imposing an unfair purchase price on fishing rights holders, which may constitute an infringement,” Gowases said.

The statement said there were 11 companies fishing for horse mackerel and there were 128 rights holders, 20 joint ventures without vessels and 20 vessels operating in the sector.

About 10 companies operate or charter horse mackerel fishing vessels in Namibia.

“We have launched a second investigation in the fishing sector against several fishing companies that own vessels,” explains //Gowases.

She says companies were given the opportunity to provide their views.

“The Commission gave respondents an opportunity within 30 days to make any comments they wished, as required by section 33 of the Competition Act,” Gowases said.