Fish companies fined for price fixing

SEVEN fish fingerlings distributors have been fined up to 10 percent of their annual turnover by the Board of Commissioners of the Competition and Consumer Protection Commission (CCPC) for price fixing.

CCPC Senior Public Relations Office, Namukolo Kasumpa, said the decision was made after investigation in April which found that fish fingerlings producers and distributors were engaged in a cartel.

This is after they issued a public notice for an impending uniform price increment for the price of fish fingerlings.

Ms Kasumpa said the seven companies were Palabana Fisheries Limited, Mukasa Agro Solutions and Fish Farm Limited, Savana Streams Limited and Chirundu Bream Farm Limited.

Others were First Hatch Investment Limited, Iban Aquafish Solutions and Consultancy Limited and Msekese Fisheries Limited.

She said in statement that the collusive practices were contrary to Section 8 and 9 of the Competition and Consumer Protection Act (CCPA) No. 24 of 2010.

Ms Kasumpa said the investigation also revealed that there was no justification for all companies to have a common pricing policy.

This is because each company had different production and distribution costs, and would therefore not all take the same time to produce and distribute the fish fingerlings.

“The Board noted that the objective of the restrictive agreement not only increased prices of fish fingerlings but also reduced customer choice as competitive pricing was eliminated. “Based on these facts, the Board of Commissioners decided to fine six (6) Fish companies 9 per cent and of their annual turnover and Palabana Fisheries Limited 10 per cent in accordance with Section 8 and 9 of the CCPA,” she said.

Ms Kasumpa warned businesses that were engaged in collusive arrangements to desist from such conduct.