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Archive -Seychelles

FTC settles case against STC regarding franchise agreements |13 December 2013

The Fair Trading Commission (FTC) has settled competition case (FCA 22) of Agreements; preventing, restricting or distorting competition as per sub-part 2 and 3 of the Fair Competition Act 2009 with regards to anti-competitive provisions of the Franchise Agreement between the Seychelles Trading Company Ltd (STC) and its franchise outlets.

On October 29, 2012, STC applied to the FTC for guidance as stipulated under the Fair Competition Act 2009, Section 14 in relation to the terms and conditions of its Franchise Agreement.

The Commission has concluded through its investigation that certain provisions of the Franchise Agreement were not in line with the Fair Competition Act 2009.

STC has subsequently opted into a voluntary undertaking in writing with the Commission pursuant to Section 48 of the Fair Competition Act, 2009 which is opined to satisfactorily address the concerns highlighted in the investigation report.

On November 20, 2013, the Board of Commissioners endorsed the said undertaking as final settlement of the matter.

As per section 49 (1) of the Fair Competition Act of 2009, the Commission shall keep under review the compliance with directions given by the Commission and the performance of undertakings given by an enterprise.

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