NACC opens Rani probe
The Namibia Competition Commission (NaCC) has opened a formal investigation into Rani Group and six major fast-moving consumer goods suppliers following complaints from micro, small and medium-sized enterprises over alleged anti-competitive practices.
The investigation centres on allegations of preferential stock allocation, the withdrawal of credit terms, and the exclusion of smaller retailers from volume-based discounts and rebates.
The Commission said the complaints were submitted by independent retailers who allege that the practices could put smaller businesses at a competitive disadvantage by increasing their costs and limiting their access to products and favourable trading terms.
The retailers further allege that the practices could force some businesses to sell or exit the market, while enabling Rani Group to expand its operations into areas where smaller retailers already operate.
The companies named as respondents are Rani Group, Namib Mills, Bokomo Namibia, Coca-Cola Namibia Bottling Company, Distell Namibia, Namibia Breweries and Anheuser-Busch InBev Namibia.
The Commission is investigating whether the alleged conduct contravenes sections 23 and 26 of the Competition Act of 2003.
Section 23 deals with prohibited practices that substantially lessen or prevent competition, while section 26 addresses the abuse of a dominant position.
The investigation does not establish that the companies have breached the Competition Act. The Commission will consider the responses from the respondents and other information gathered during the investigation before determining whether further action is warranted.
The companies have 30 days to respond to the allegations.
The investigation comes amid concerns among smaller retailers about their ability to compete with larger businesses in Namibia’s increasingly concentrated retail and distribution markets.
The Commission said members of the public with relevant information can assist the investigation by contacting it at [email protected] or through its social media channels.
