Allexer Namundjebo
Rent-A-Drum (Pty) Ltd will pay a N$ 250,000 settlement after the Namibian Competition Commission (NaCC) found the company engaged in anti-competitive conduct in violation of the Competition Act.
The case followed a complaint filed by D Ishuna Investments CC in August 2023.
The Commission launched an investigation under Case No.: 2023AUG0006COMP.
The findings, published in government gazette No. 8644 on 8 May, revealed that Rent-A-Drum had an exclusive distributorship agreement with Finnish company Molok OY.
This agreement made Rent-A-Drum the only supplier of Molok-branded underground waste systems in Namibia.
At the same time, the Swakopmund Municipality’s procurement process specified only Molok products, effectively blocking other suppliers from entering the market.
The Commission concluded that Rent-A-Drum’s conduct violated section 23(1), read with sections 23(2)(b) and 23(3)(e), of the Competition Act, which prohibits actions that lessen competition or limit market access.
Rent-A-Drum disputed NaCC’s findings and legal interpretation but agreed to settle without admitting liability.
Under the consent agreement, the company will pay a N$150,000 fine and N$100,000 toward the Commission’s investigative and legal costs.
It will also pay N$16,102.10 to D Ishuna Investments CC in final settlement under section 40(2)(a) of the Act.
“This outcome demonstrates our continued commitment to safeguarding fair competition and ensuring a level playing field in the Namibian market,” said NaCC CEO Vitalis Ndalikokule.
He said procurement processes tied to a single brand or distributor limit choice and harm smaller businesses.
The commission said it will submit the consent agreement to the High Court for confirmation to give the settlement the full effect of a court order.
Rent-A-Drum must implement several compliance measures.
These include competition compliance training for management within 60 days, internal distribution of the agreement summary within 30 days, and regular progress reports to the Commission.
The company must also adopt and maintain a zero-tolerance policy on anti-competitive conduct.
The N$150,000 fine will be paid into the State Revenue Fund as required by section 53(5) of the Act.
