NaCC warns taxi operators
The Namibian Competition Commission (NaCC) has issued a cautionary statement, warning taxi operators against implementing fare hikes without official approval from the necessary regulators.
The NaCC strongly urged taxi operators not to hike fares, despite the Namibian Transport and Taxi Union (NTTU) saying its members would increase prices by 50% in September, even if the road transportation board did not officially approve their request.
It said such price increases, without the endorsement of the authorities tasked to decide on the matter “would amount to prohibited price fixing in terms of the Competition Act”.
The commission said recent proposals by taxi operators and their associations to “collusively increase taxi fares in the absence of an endorsement from the transportation board” were considered under the Competition Act of 2003.
The Act prohibits competing undertakings such as taxi operators from jointly colluding on prices charged to consumers, unless “such conduct is authorised in terms of relevant laws such as the Road Transport Act”.
The commission added it was on this basis that it in 2017 “resolved not to proceed against the bus and taxi associations for price fixing, as such conduct was authorised by the Road Transport Act”.
Taxi operators who “collusively and intentionally impose fixed taxi fare increases without following the due process set out in the Road Transport Act will render themselves liable in terms of the Competition Act and thereby attract a formal investigation, which may lead to punitive civil and/or criminal sanctions,” the NaCC said.
NTTU president Werner Januarie recently announced that while the union had applied to the transportation board for a 50% taxi fare increase, the union would still push ahead with the hike, even if the board declined their application.
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The NaCC strongly urged taxi operators not to hike fares, despite the Namibian Transport and Taxi Union (NTTU) saying its members would increase prices by 50% in September, even if the road transportation board did not officially approve their request.
It said such price increases, without the endorsement of the authorities tasked to decide on the matter “would amount to prohibited price fixing in terms of the Competition Act”.
The commission said recent proposals by taxi operators and their associations to “collusively increase taxi fares in the absence of an endorsement from the transportation board” were considered under the Competition Act of 2003.
The Act prohibits competing undertakings such as taxi operators from jointly colluding on prices charged to consumers, unless “such conduct is authorised in terms of relevant laws such as the Road Transport Act”.
The commission added it was on this basis that it in 2017 “resolved not to proceed against the bus and taxi associations for price fixing, as such conduct was authorised by the Road Transport Act”.
Taxi operators who “collusively and intentionally impose fixed taxi fare increases without following the due process set out in the Road Transport Act will render themselves liable in terms of the Competition Act and thereby attract a formal investigation, which may lead to punitive civil and/or criminal sanctions,” the NaCC said.
NTTU president Werner Januarie recently announced that while the union had applied to the transportation board for a 50% taxi fare increase, the union would still push ahead with the hike, even if the board declined their application.
STAFF REPORTER
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