(3 Minutes Read)
According to ARC, the investigation has now culminated in the imposition of five fines on the companies concerned, totalling 69.5 million meticais (€940,000).
The Mozambican Competition Regulatory Authority (ARC) has condemned four sugar companies for forming a cartel in the sector. All of the companies are partners in the same purchasing and sales company Distribuidora Nacional de Açúcar (DNA) , and ARC ordered the DNA dissolved for anti-competitive practices, referring the case to the Attorney General’s Office (PGR).
According to ARC, the investigation has now culminated in the imposition of five fines on the companies concerned, totalling 69.5 million meticais (€940,000). The investigation leading to this conviction began in 2022, following complaints received, and scrutinised practices such as “prohibited horizontal agreements” and “participation in anti-competitive practices” through a misdemeanour proceeding under Mozambique’s Competition Law.
The case concerns Distribuidora Nacional de Açúcar (DNA), established in 2002 by four partners: Tongaat Açucareira de Moçambique (Mafambisse, in Sofala), Tongaat Hulett Açucareira de Xinavane (Xinavane, in Maputo), Companhia de Sena (Sena, in Sofala), and Maragra Açúcar (Maragra, in Maputo), each with a 25% share.
Read Also:
https://trendsnafrica.com/mozambique-businesses-raise-alarm-against-cost-of-raw-materials/
DNA acts as a cartel, a mechanism for coordination between competitors, ensuring that all factories sell sugar at standardised prices, subverting the law of supply and demand. This model eliminates the possibility of effective competition between factories in the relevant market and constitutes a serious violation of the Competition Law. The lack of price variation between factories prevents consumers from benefiting from discounts or more competitive commercial strategies,” accuses the ARC.