Angola Competition Authority: Fines Customs Brokers Over Price Fixing

• Angola's Competition Regulatory Authority (ARC) fined the Chamber of Official Customs Brokers of Angola (CDOA) AOA 7,245,638.
• The fine was imposed for restricting competition through the adoption of a minimum fee schedule for customs clearance services.
• The infringement originated from a December 2022 CDOA resolution that mandated direct price setting for import and export goods.
• The ARC ordered the immediate cessation of the infringement, revocation of the fee schedule, and public notification that prices must be set independently by operators.
• This decision sets an important precedent for professional and business associations in Angola regarding compliance with competition rules.

The Angola Competition Authority views the customs clearance services market as a vital component of both international trade and the nation's overall economic activity.

Angola's Competition Regulatory Authority (ARC) has imposed a significant financial penalty on the Chamber of Official Customs Brokers of Angola (CDOA). The fine, totaling AOA 7,245,638, was levied because the CDOA was found to be restricting competition within the domestic market. This action by the Angola Competition Authority fines customs brokers for practices deemed anti-competitive.

The core of the infringement stemmed from the CDOA's adoption of a mandatory minimum fee schedule for customs clearance services. This measure effectively prevented official customs brokers from freely determining their own prices for these crucial services. The ARC's investigation traced this anti-competitive practice to a resolution approved during an Extraordinary General Assembly of the CDOA in December 2022.

That resolution specifically introduced a fixed fee structure and mandated the direct setting of prices that official customs brokers were required to charge for both the import and export of goods. The ARC concluded that this constituted a form of CDOA price fixing Angola, directly undermining the principles of free market competition in the customs clearance services sector.

In addition to the monetary fine, the ARC issued several directives aimed at rectifying the anti-competitive behavior. The Authority ordered the immediate cessation of the infringement and mandated the prompt revocation of the contentious fee schedule. Furthermore, the CDOA is now required to clearly inform its members and the general public that prices for customs clearance services must be established freely and autonomously by each individual economic operator, without any coordination or imposition from professional associations.

The regulatory body emphasized that robust competition is essential for the Angolan economy, as it empowers consumers to benefit from more competitive prices, enhanced service quality, and greater innovation. By enforcing mandatory minimum fees, the CDOA's actions severely curtailed the ability of official customs brokers to compete based on their pricing strategies. This, in turn, limited customer choice and disrupted the normal functioning of the market for customs clearance services competition Angola.

The CDOA faces a strict deadline for compliance. It must provide the ARC with definitive proof of its adherence to these measures within 30 days from the date the decision becomes final or legally binding, in accordance with the Competition Law.

The Angola Competition Authority views the customs clearance services market as a vital component of both international trade and the nation's overall economic activity. Consequently, ensuring effective competition within this sector is considered a matter of significant public interest. This decision, where the ARC fines CDOA minimum fees, not only addresses a specific instance of anti-competitive conduct but also establishes an important precedent for future Angola Competition Law enforcement.

The Authority stated that this ruling serves as a clear signal for professional and business associations across Angola, underscoring the necessity of operating strictly within the bounds of competition rules. The ARC reiterated its unwavering commitment to promoting, defending, and preserving competition throughout Angola. This aligns with its core mission to prevent and sanction practices that could undermine the efficient operation of markets, ultimately benefiting consumers, economic operators, and the national economy, highlighting increased Angola anti-competition professional associations enforcement.

This decision signals increased enforcement by the Angola Competition Authority against professional associations that engage in anti-competitive practices like price-fixing. Lawyers should advise professional and business associations in Angola to review their internal regulations and fee structures to ensure compliance with competition law and avoid similar penalties.

Source: Original reporting via ANGOP