In a media release dated 7th September 2021, the Competition Commission announced the launching of an investigation concerning a suspected abuse of monopoly situation by the Bhunjun Group of Companies and Betamax Ltd in the supply of petroleum products to the State Trading Corporation.
The Commission became aware of the that the conditions of supply between the Bhunjun Group, Betamax and the State Trading Corporation have seemed to affect the competition within Mauritius. The Executive Director, Mr Deshmuk Kowlessur, stated that the Commission “conducted a preliminary assessment on the matter, and I opened an investigation after I had reasonable grounds to believe that the parties’ conduct may have been in contravention with the monopoly provisions of the Competition Act 2007”
The Competition Commission is concerned with the arrangements between the parties and the State Trading Corporation, inasmuch as the latter will be required to guarantee payment at a predetermined escalating freight on the full capacity of the tankers for a period of 15 years as from 2010. As per the Commission, these terms can be anti-competitive resulting in a monopoly situation for the period between 2010 and 2025 and therefore, against the Competition Act of 2007.
The assessment will be based on various aspects, which includes the questions of the potential; disproportionality of certain terms, exploitative pricing and distortion caused to the market. The conducts of the Bhunjun Group and Betamax will also be scrutinized by the Commission.
The Executive Director addressed the recent judgment involving Betamax and the State Trading Corporation and stated that “the investigation is being conducted with due regards to the judgments of the Supreme Court and the Privy Council on the case involving Betamax and State Trading Corporation.”
