Mauritius Brief – 01/11/2010

1 November 2010|In Mauritius Briefs

Recent Successes:

  • No penalty for Air Mauritius and MAITA 
  • CCM launches investigation into event management market

No penalty for Air Mauritius and MAITA

The Competition Commission of Mauritius (“CCM”) has recently released its findings in relation to its investigation of Air Mauritius Ltd (“Air Mauritius”) and The Mauritius Association of IATA Travel Agents (“MAITA”). The CCM did not impose a financial penalty on Air Mauritius nor on MAITA, as it found no intentional or negligent breach of the Competition Act was committed.

Air Mauritius and MAITA were under investigation by the CCM regarding the service fee level they charge for various categories of tickets, and for allegedly fixing prices in the market. After the Executive Director, John Davies, released the report concerning the investigation, both Air Mauritius and MAITA responded by taking action to remedy anti-competitive behaviour that was highlighted in the document, and neither requested a hearing regarding the report. Although the CCM urged the Executive Director to continue to monitor Air Mauritius and MAITA, it concluded neither organisation was in breach of the Competition Act.

The CCM may impose a penalty of up to 10% of a firm’s turnover for the preceding financial year where the firm has intentionally or negligently engaged in a collusive agreement.


CCM launches investigation into event management market

The Competition Commission of Mauritius (“CCM”) has launched an investigation into the merger of Event Strategy Ltd (“Event Strategy”) and LC Events Co Ltd (“LC Events”).

The CCM will investigate the shares bought by Event Strategy, at a level of 33%, in LC Events as a “merger situation” under Section 51 of the Competition Act 2007. The Executive Director will report whether the merger has resulted in, or is likely to result in a substantial lessening of competition in event management and related markets in Mauritius. If Event Strategy has more influence over decisions by its competitor, LC Events, since the merger, the Executive Director will consider if this substantially lessens competition that, previous to the merger, had a significant constraint on event management in the market.

Once the Executive Director has reported his findings, the CCM will conclude whether the “merger situation” has resulted, or is likely to result in a substantial lessening of competition within the market. If so, the CCM may take preventative steps to remedy the situation, and may require enterprises to divest itself from assets and/or adopt or desist from particular conducts.

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