Enforcing the Competition Law in Namibia A Toolkit - cuts ccier

RESTRICTIVE BUSINESS PRACTICESBox 6: Price-fixing in Healthcare and Motor VehicleManufacturing IndustriesThe South African Competition Commission initiated and completed aninvestigation into price fixing in the healthcare industry, and has referredits findings to the Competition Tribunal. The Tribunal has determined thatthe Respondents: the South African Medical Association (SAMA), theHospital Association of South Africa (HASA) and the Board of HealthCare Funders (BHF) have all contravened Section 4(1)(b)(i) of theCompetition Act of 1998, by directly or indirectly fixing prices.Within SAMA, there are practitioners that are competitors, for exampleurologists competing with other urologists or general practitioners competingwith other general practitioners. The recommendation of tariffs for suchpractitioners to use, therefore, constitutes price fixing. In the case of HASA,the association recommends tariffs, in terms of which charges can be leviedfor certain services provided by the private hospital groups, who are allcompetitors and members of HASA. Likewise, the BHF recommends ascale of benefits to its members. The tariffs are intended to be guidelinesfor the purchasing of healthcare services.It came to the Commission’s attention that the respondents recommend andpublish tariffs annually. Precedent by international competition authoritiesviews this conduct as price fixing under competition law. The Commissionagrees and has determined that it constitutes a prohibited practice regardlessof whether the tariffs are adhered to or not.Source: Achal Prabhala (2006), South Africa, in Competition Regimes in the World – ACivil Society Report, CUTSMotor Manufacturers are Suspected of fixing Vehicle PricesThe South African Competition Commission has initiated a formalinvestigation into the high prices of vehicles. The Competition Commissionstarted with a formal investigation into alleged setting a minimum resaleprice, collusion and price coordination. The main focus of the investigation,however is the setting of a minimum resale price by manufacturers whichwe think might be the standard practice in the industry.As a result of that announcement, Internet chat rooms and discussion siteson motor websites are filled with car enthusiasts crying for the blood ofvehicle manufacturers in South Africa. They feel that they have been cheatedand betrayed and claim to have suspected as much for a long time.Namibians that keep up-to-date with South African news are wonderinghow the results of the investigation will affect Namibian motorists. More tothe point, Namibians are asking whether Toyota, recently fined N$12mn28 Enforcing the Competition Law in Namibia: A Toolkit