The Independent Consumer & Competition Commission has initiated legal proceedings against Steamships Trading Company Limited for the acquisition of shares in Consort Express Lines Limited in 2011.
A ruling on the motion was handed on 27th March 2018 in favour of the ICCC, dismissing Steamships Trading Company’s motion to dismiss the case.
The court granted the case to go for trial.
ICCC made its intention known today through a media conference to pursue the case against Steamships Trading Company Limited and others for certain behaviours in the coastal shipping industry resulting in infringing and non-compliance with the principles of the ICCC Act.
“Basically what happened was that Steamships acquired shares from Kambang Holdings Limited. At that time Kambang Holdings Ltd, Steamships and Anton Lee Transport Ltd were the 3 shareholders of Consort Express Lines Ltd but Steamships acquired certain percentages of Kambang’s shares in Consort,” clarified Steven Sugl, ICCC’s executive manager of competitive markets and fair trade division.
The ICCC filed legal proceedings, per Section 69 of the ICCC Act.
“We think that there’s a possible breach of section 69 of the ICCC Act. If a person is found to have breached section 69, the court can order up to K10 million in penalties,” explained Jacqueline Atua, Lawyer & Corporate Secretary of ICCC.
ICCC said Steamships’ acquisition lessened competition in the shipping industry with consumers feeling the full brunt of their actions.
“Consumers are paying a lot because shipping liners are passing the cost on to wholesalers, who then pass it on to retailers and consumers pay high prices for the goods and services,” reiterated ICCC Commissioner Paulus Ain.
Commissioner Ain added sufficient competition is need in the shipping industry to keep prices of goods and services at a minimal rate.
(From left: Jacqueline Atua, Lawyer & Corporate Secretary of ICCC, ICCC Commissioner Paulus Ain and Steven Sugl, ICCC’s executive manager of competitive markets and fair trade division)