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Yamaha Motor faces scrutiny as COMESA launches anti-competitive probe

NAIROBI, Kenya, Aug 26 – COMESA Competition Commission has announced that it will launch an investigation on Yamaha Motor following an alleged anti-competitive conduct.

In a notice by the CCC director Willard Mwemba, the motor company is believed to have concluded exclusive distributor agreements with affiliates in Africa, which consequently impact trade between member states, contrary to COMESA Article 16.

COMESA has, however, pointed out that the initiation of the investigation neither presupposes that the conduct being investigated has been determined to be anti-competitive nor that the company has violated the commission’s regulations.

The commission has thus invited all interested stakeholders to submit representations by 6 September.

“Article 16 of the regulations 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,” the notice stated.

“The commission has a reason to believe that Yamaha Motors Co.Ltd has exclusive distributor agreements or arrangements with affiliates in Africa which affect trade between member states and have as their object or effect the prevention, restriction or distortion of competition within the common market,” it added.

According to the director, the investigation will be pivotal in assessing the company’s conduct and applying the appropriate measures in line with COMESA’s regulations.

“The Commission will in accordance with the provisions  of part 3 of the regulations, conduct an inquiry to determine  whether the alleged conduct has its object or effect the prevention, restriction or distortion of competition in the common market or in a substantial part of it,” it stated.

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