Competition watchdog probes funeral industry monopoly complaint
Funeral supplier alleges N$2m losses due to monopoly
The NaCC is investigating a formal complaint, filed more than a year ago, in which a company says it has been pushed to the brink due to alleged anti-competitive practices within the industry.
Namibia’s funeral industry has been rocked by a bitter dispute after Windhoek-based APV Burial lodged a formal complaint with the Namibian Competition Commission (NaCC) against Immanuel Coffins & Caskets CC, alleging anti-competitive practices aimed at monopolising the coffin supply market.
According to the complaint, APV Burial has been pushed to the brink of collapse, with losses estimated at more than N$2 million.
The complaint, filed on 1 July 2024 and seen by Namibian Sun, was submitted by APV Burial’s managing member, William André Pretorius. In it, he accuses Immanuel Coffins of allegedly using exclusive agreements, intimidation, surveillance and sabotage to drive competitors out of business.
Pretorius warns his company could face further severe losses if the situation continues. He also claims similar practices have already forced other businesses to close.
“The systemic undermining of fair competition within the funeral industry must be stopped. It is imperative to safeguard fairness and equal opportunity in the marketplace,” the complaint states.
The NaCC acknowledged receipt of the complaint but declined to comment further, stating that investigations are still ongoing.
Pretorius claims Immanuel Coffins, in operation for 18 years, leverages its dominance to lock undertakers into restrictive arrangements, leaving little room for smaller players.
He claims his company, established in 2021, initially supplied several undertakers – until sales abruptly stopped.
“We have records of all sales made to several undertakers, but suddenly sales stopped, and clients became very reluctant to engage with APV Burial,” Pretorius wrote.
“Undertakers were not prepared to risk their livelihoods by sourcing from us as a new supplier with no track record.”
Pretorius further alleges “character defamation, sabotage and the spreading of false information” against the company in the complaint.
Supply agreements under scrutiny
Documents attached to the complaint reportedly show that Immanuel Coffins entered into consignment stock agreements with undertakers, restricting them from sourcing products elsewhere – a practice critics argue could limit free competition.
An attached contract states: “For the duration of this agreement, the retailer shall not be entitled to buy and stock coffins, caskets and domes from any other coffin supplier in Namibia, unless agreed to by both parties before purchasing such products.”
Pretorius further alleges that another company, Bonlife Insurance, allegedly directs clients exclusively to Angels Funeral Services, which he claims has an exclusive supply agreement with Immanuel Coffins.
According to him, APV Burial’s approaches to Angels were ignored, while clients who chose APV Burial products were allegedly informed that Bonlife funeral packages only covered items from Angels’ showroom.
The complaint claims some clients were instructed to use only Angels to conduct funerals, despite Bonlife policies being sold through various undertakers nationwide.
This, Pretorius argues, effectively restricts competition and unfairly benefits both Angels and Immanuel Coffins.
Immanuel Coffins responds
When contacted for comment, Berdine Blaauw, finance manager at Immanuel Coffins & Caskets, said it was too early to respond in detail.
“Once the commission has concluded its review and communicated the outcome, we will be able to provide further comment,” she said.
Efforts to obtain comment from Angels Funeral Services and Bonlife Assurance Namibia proved futile by the time of going to print.
According to the complaint, APV Burial has been pushed to the brink of collapse, with losses estimated at more than N$2 million.
The complaint, filed on 1 July 2024 and seen by Namibian Sun, was submitted by APV Burial’s managing member, William André Pretorius. In it, he accuses Immanuel Coffins of allegedly using exclusive agreements, intimidation, surveillance and sabotage to drive competitors out of business.
Pretorius warns his company could face further severe losses if the situation continues. He also claims similar practices have already forced other businesses to close.
“The systemic undermining of fair competition within the funeral industry must be stopped. It is imperative to safeguard fairness and equal opportunity in the marketplace,” the complaint states.
The NaCC acknowledged receipt of the complaint but declined to comment further, stating that investigations are still ongoing.
Pretorius claims Immanuel Coffins, in operation for 18 years, leverages its dominance to lock undertakers into restrictive arrangements, leaving little room for smaller players.
He claims his company, established in 2021, initially supplied several undertakers – until sales abruptly stopped.
“We have records of all sales made to several undertakers, but suddenly sales stopped, and clients became very reluctant to engage with APV Burial,” Pretorius wrote.
“Undertakers were not prepared to risk their livelihoods by sourcing from us as a new supplier with no track record.”
Pretorius further alleges “character defamation, sabotage and the spreading of false information” against the company in the complaint.
Supply agreements under scrutiny
Documents attached to the complaint reportedly show that Immanuel Coffins entered into consignment stock agreements with undertakers, restricting them from sourcing products elsewhere – a practice critics argue could limit free competition.
An attached contract states: “For the duration of this agreement, the retailer shall not be entitled to buy and stock coffins, caskets and domes from any other coffin supplier in Namibia, unless agreed to by both parties before purchasing such products.”
Pretorius further alleges that another company, Bonlife Insurance, allegedly directs clients exclusively to Angels Funeral Services, which he claims has an exclusive supply agreement with Immanuel Coffins.
According to him, APV Burial’s approaches to Angels were ignored, while clients who chose APV Burial products were allegedly informed that Bonlife funeral packages only covered items from Angels’ showroom.
The complaint claims some clients were instructed to use only Angels to conduct funerals, despite Bonlife policies being sold through various undertakers nationwide.
This, Pretorius argues, effectively restricts competition and unfairly benefits both Angels and Immanuel Coffins.
Immanuel Coffins responds
When contacted for comment, Berdine Blaauw, finance manager at Immanuel Coffins & Caskets, said it was too early to respond in detail.
“Once the commission has concluded its review and communicated the outcome, we will be able to provide further comment,” she said.
Efforts to obtain comment from Angels Funeral Services and Bonlife Assurance Namibia proved futile by the time of going to print.
Comments
Namibian Sun
No comments have been left on this article