Comesa Competition Commission (CCC) says the three have been accused of price signalling, a move that has a negative impact on consumers.
The shipping lines that are being investigated are Maersk, CMA-CGM and United Africa Feeder Line, which have operations in the Comesa member States.
Three major shipping lines are being investigated by a regional competition watchdog for allegedly coordinating in raising freight charges, a move considered anti-competitive in a liberalised market.
Comesa Competition Commission (CCC) says the three have been accused of price signalling, a move that has a negative impact on consumers.
The shipping lines that are being investigated are Maersk, CMA-CGM and United Africa Feeder Line, which have operations in the Comesa member States.
Willard Mwemba, CCC chief executive officer, said they are investigating why these shipping lines have raised their freight charges to the same level within a short time.
“We are investigating these shipping lines for price signalling, a move that if not checked could have a negative impact on consumers,” said Dr Mwemba in an interview with Shipping and Logistics.
“In particular, the Commission has observed that the shipping liners have issued price announcements which may be an infraction of Article 16 of the Regulations. The Commission has preliminary concerns that price announcements are a form of coordinated behaviour or concerted practice.”
According to CCC, part three of the agency’s regulations, particularly Article 16, prohibits all agreements which may affect trade between member states and “have as their object or effect the prevention, restriction or distortion of competition in the common market”.
“Furthermore, Article 19 prohibits agreements or arrangements between competitors which, among others, allocate customers and markets within the common market. As such, the Commission will assess the extent to which the price announcements are compatible with the regulations,” said the CCC boss.
The Commission has invited all interested stakeholders to submit representations on these allegations by today.
Dr Mwemba was speaking in Nairobi on the sidelines of Comesa Competition Commission Sensitisation workshop for the Business Community in Kenya.
The competition watchdog is at the moment conducting investigations into a number of airlines suspected to be engaging in anti-competitive behaviour.
The CCC began the probe in early February after it established that some airlines were refusing to reschedule passenger tickets at no additional charges even if the rescheduling is not a passenger's fault.
Some airlines operating within the region have also been refusing to compensate passengers for loss or damage of their luggage, which is contrary to the Comesa competition regulations.
The preliminary probe further shows that some airlines operating in the region have been taking too long to return lost passenger baggage.
Others have been failing to refund cancelled tickets in accordance with the laid out procedures while others have been engaging in unexplained delays and cancellations.
The agency said they are at different stages of investigating these airlines and the verdict would be reached soon once all the issues have been concluded.
