Competition Commission Probes Water Tank Grant Price Fixing

Mauritius's Competition Commission has opened a preliminary investigation into suspected collusion among water tank suppliers, following concerns that some vendors may have coordinated their actions to pressure the government into raising the existing Rs 15,000 subsidy and to refuse new grant coupons issued to households.

The inquiry was announced on 5 November. The Competition Commission, known formally as the Competition Commission of Mauritius (CCM), is an independent regulatory body established under the Competition Act 2007. Its role is to investigate anti-competitive behaviour, including price-fixing, market sharing and collective boycotts that distort fair trade.

The Water Tank Grant Scheme is a government programme that provides eligible Mauritian households with a voucher worth Rs 15,000 to purchase a domestic water storage tank. The scheme was introduced to help residents cope with increasingly frequent water shortages across the island, allowing families to store water during periods of rationing or supply disruption.

The CCM's preliminary inquiry will examine whether suppliers acted together, rather than independently, to demand a higher subsidy amount and to decline coupons under the current scheme. If suppliers are found to have collectively refused to honour government-issued vouchers, this could constitute a concerted practice that restricts competition and harms consumers, which would be a breach of Mauritian competition law.

A preliminary inquiry is the first formal step in the CCM's investigative process. It allows the commission to gather information and assess whether there is sufficient evidence to open a full investigation. At this stage, no findings of wrongdoing have been made against any specific supplier or company.

The timing matters. Many Mauritians rely on the grant scheme to afford water storage equipment, particularly in areas prone to supply cuts. If suppliers have been refusing to accept coupons, households that qualified for the grant may have been unable to use it, leaving them without an affordable way to build a water reserve at home.

What this means: If the CCM finds evidence of collusion, it has the power to impose financial penalties on the companies involved and order them to change their behaviour. For consumers, a successful outcome could mean the grant scheme functions as intended, with suppliers competing fairly and accepting government vouchers. For the market more broadly, this investigation sends a signal that coordinated supplier behaviour, particularly involving a public subsidy scheme, will face scrutiny.

The investigation is at an early stage, and the CCM has not yet named any specific companies. Further announcements are expected as the inquiry progresses.

Source: Le Defi Media