NaCC to probe bank, law firm dealings
• By Business Reporter
THE Namibian Competition Commission (NaCC) has initiated an investigation against law firm Dr Weder, Kauta & Hoveka Inc and Bank Windhoek in terms of Section 33 of the Namibian Competition Act No. 2 of 2003, following allegations of exclusive dealings pertaining to the property conveyance services.
“The commission received a complaint alleging that Dr Weder, Kauta & Hoveka Inc and Bank Windhoek entered into an Exclusive Service Level Agreement that appoints Dr Weder, Kauta & Hoveka Inc as the exclusive and sole conveyancing attorneys for properties financed through Bank Windhoek.
“It is alleged that this agreement requires Bank Windhoek property financing applicants to only make use of Dr Weder, Kauta & Hoveka Inc’s conveyancing services to the exclusion of other conveyancing service providers in the relevant market,” the commission said in a statement which went on to say that the agreement and its maintained exclusivity is said to limit competition and forecloses other independent service providers in the relevant market, which is provisionally defined as the provision of conveyancing services to Bank Windhoek financed property transactions.
“The alleged conduct of law firm Dr Weder, Kauta & Hoveka Inc amounts to a possible contravention of Section 23 (1) read with Section 23 (2) (b), and Sections 23 (3) (e) and 23 (3) (g), while that of Bank Windhoek amounts to a possible contravention of Section 23 (1) read with Section 23 (2) (b), and Sections 23 (3) (e) and 23 (3) (g) as well as section 26 (1) read with section 26 (2) (a), 26 (2) (b) and 26 (2) (d) of the Competition Act.
“The commission has engaged all the affected parties and afforded them the opportunity to respond to the allegations. Upon receipt of the responses to the allegations, the commission will conduct an assessment and stemming therefrom, determine the relevant cause of action,” said NaCC.