Driving schools prevented from raising license prices

The Competition Regulatory Authority (ARC) ordered the suspension, with immediate effect, of the purpose of fixing new prices for the acquisition of driving licenses that had been established by the Association of Driving Schools of Mozambique (AECOMO).

AECOMO announced, at the beginning of the year, the entry into force of new prices for driving licenses with effect from March 1, 2022, in the city and province of Maputo.

The updated value for the initial classes would be 11,500 meters for C1-Heavy, 9500 meters for B-Lights, and 6700 meters for A-Motorcycles. For the registration and sub-categories, the new price would be 7,200 meters for B-Lights and C1-Heavy. However, the cost of 6,500 meters would apply for G-Professional and P-Public Services, as well as for D-Dangerous Goods. It should be noted that for practical recycling the price is 800 Meticais per hour.

The ARC's penalty on AECOMO results from an investigation conducted by the Authority and is applied under the provisions of paragraph b) of paragraph 1 of Article 46 of Law No. 10/2013 of April 11, the Competition Law, which consists of a warning, for the infringement committed by that Association, according to "Notícias" which cites a statement from ARC.

"AECOMO is an association of companies, and therefore, within the meaning of Article 17 of the Competition Law, it is prohibited from agreeing or fixing, directly or indirectly, purchase or selling prices, or interfering in the determination thereof, to its members and from adopting uniform or concerted commercial conduct, provided that such agreements, decisions or concertation have the object or effect of preventing, distorting or appreciably restricting competition, in the whole or in part of the national market," says the Authority.

The ARC found the infringement not to be particularly serious as the prices in question were not implemented; no advantage was found to have been conferred on the companies involved; and AECOMO cooperated with the ARC until the end of the administrative procedure. AECOMO was also warned to refrain from practices harmful to competition, under penalty of incurring severe sanctions.

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