Competition to investigate Betamax ‘monopoly’

The Competition Commission of Mauritius (CCM) has launched an investigation into a suspected abuse of a monopolistic situation by the Bhunjun Group of Companies and Betamax Ltd., over the supply of transportation services of petroleum products to the State Trading Corporation (STC).

The CCM reportedly argued that Betamax’s practices are similar to a reviewable monopolisic situation and has the object or effect of preventing, restricting or distorting competition, or in any other way, constitute exploitation of the monopoly situation.

Betamax which had a contract to transport petroleum products purchased by the STC since 2010 and for a period of 15 years saw its contract been unilaterally terminated by the STC.

Betamax entered a lawsuit against STC and the privy council finally ruled in its favour in June this year, asking the STC to compensate the company Rs 4.6 billion.

The Mauritian Government has recently set up a Commission of Inquiry into the circumstances in which the contract was signed and eventually annulled. The Commission of Inquiry is being contested by Betamax.