Competition watchdog finds no price-fixing in horse mackerel sector

THE Namibian Competition Commission (NaCC) has found no evidence of anti-competitive behaviour in the horse mackerel fishing sector.

The NaCC opened two separate investigations into the sector in 2023 and 2024 to look into whether fishing companies colluded to pay fishing rights holders artificially low prices for their quotas.

“Following thorough investigations, the commission has concluded that no contraventions of the Competition Act occurred in either matter,” NaCC spokesperson Dina //Gowases says in a media statement on Monday.

The first investigation into four operators was based on allegations that the operators colluded to offer low quota usage fees.

Fishing quotas are awarded by the government and determine how much of the species the fishing right holder is allowed to harvest.

In 2024, there were 128 horse mackerel rights holders, but many of them do not operate vessels. Instead, the rights holders sell their right to harvest the fish to operating companies. The price is the quota usage fee.

The commission has found that there was no evidence of the operating companies agreeing on a price to offer rights holders.

“Evidence showed that rights holders can and do negotiate better deals, with agreements reflecting varied terms such as percentages of final products, profit-sharing, by-catch entitlements, and fees above the government reserve price having been offered to them,” //Gowases says.

The second investigation opened by the NaCC in 2024 was initiated against 10 operators, looking at whether the companies abused their dominance in the market to keep prices low.

“The assessment of various quota usage agreements submitted to the commission indicates that the respondents imposed lower quota usage fees on the fishing rights holders, well below the minimum government reserve price, instead of matching it or offering more,” //Gowases said in 2024.

After the investigation, however, the NaCC has cleared the 10 operators of the allegations.

“While the respondents were found to hold a degree of market power or dominance in the relevant market, no evidence was found of an abuse of that dominant position,” //Gowases says.

The commission also found that the companies offered similar prices for quota usage fees to rights holders who own fishing vessels and those who do not own their own vessels.

The 10 operators under investigation were Erongo Marine Enterprises, Namsov Fishing Enterprises, Venmar Fishing, Seaflower Pelagic Processing, Cavema Fishing, Scombrus Fishing, Gendev Fishing Group, Hadago Fishing, Carapau Fishing and Etosha Fishing Corporation.


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