Bank Windhoek and law firm under microscope
Competition watchdog investigating allegations
Bank Windhoek property financing applicants are only making use of Dr. Weder, Kauta & Hoveka Inc's conveyancing services.
PHILLEPUS UUSIKUBank Windhoek and law firm Dr. Weder, Kauta & Hoveka Inc are being investigated for alleged anti-competitive behaviour following a complaint received by the Namibian competition “watchdog”.
In a statement, the Namibian Competition Commission (NaCC) said it is alleged that Dr. Weder, Kauta & Hoveka Inc and Bank Windhoek entered into an Exclusive Service Level Agreement that appoints the law firm as the exclusive and sole conveyancing attorneys for properties financed through Bank Windhoek.
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, NaCC said.
This, according to the competition watchdog, is limiting 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 contwravention 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, NaCC said.
The Commission said it 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.
In a statement, the Namibian Competition Commission (NaCC) said it is alleged that Dr. Weder, Kauta & Hoveka Inc and Bank Windhoek entered into an Exclusive Service Level Agreement that appoints the law firm as the exclusive and sole conveyancing attorneys for properties financed through Bank Windhoek.
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, NaCC said.
This, according to the competition watchdog, is limiting 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 contwravention 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, NaCC said.
The Commission said it 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.
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