Big four banks, PAN fined for price-fixing scheme

Guilty
The PAN agreed to pay a settlement amount of N$319 650, stemming from anti-competitive behaviour.
Ogone Tlhage
  • 16 Hours Ago - 2025-07-15 00:00:00
The Namibia Competition Commission (NaCC) has reached a settlement with the Payments Association of Namibia (PAN) and the country’s four major banks - First National Bank, Bank Windhoek, Standard Bank, and Nedbank - following an investigation into anti-competitive conduct.
The probe revealed that PAN and the banks contravened Section 23 of the Competition Act by colluding to fix interchange fees through the Payment Clearing House Card Schedule, thereby undermining fair competition in the card issuance and transaction acquisition markets.
“The Commission concluded that, because commercial banks are competitors in the markets for issuing cards and acquiring card transactions, those same banks should not be allowed to collectively set interchange fees,” the NaCC stated.
According to the Commission, as competitors, commercial banks should independently determine their own respective fees, based on cost structures and other revenue considerations. “By collectively setting fee levels, the involvement of the banks constituted a horizontal agreement between competitors to fix prices and/or market conditions, conduct that is per se prohibited,” it added.
The PAN admitted that its conduct constituted an unintended contravention of Section 23 of the Act and, as a result, entered into a Consent Agreement with the Commission in terms of Section 40 of the Act.
“The Commission and PAN have therefore agreed to settle the matter on the terms set out in the settlement agreement, constituting the full and final settlement between them,” the NaCC confirmed.
As part of the agreement, PAN has agreed to pay a total settlement amount of N$319 650, comprising a pecuniary penalty of N$299 650 and an additional N$20 000 to cover part of the Commission’s costs arising from the investigation.
“These amounts will become payable upon confirmation of the Consent Agreement as an order of the Court, in one instalment, with the full amount due within 30 days from the date the Consent Agreement is made an order of the High Court,” the Commission said.