WILLEMSTAD - The trade union Sindikato Uní di Shofùr di Taksi (SINUSTA), following the intervention of the Fair-Trade Authority Curaçao (FTAC), has withdrawn a collective price agreement by its members for transport to and from the airport.
The rates for taxi transport are regulated by the government in Curaçao. These regulated rates are maximum rates. This means that it is not allowed for taxi drivers to charge a higher rate than the statutory rate to customers. However, taxi drivers are free to charge a lower rate to a customer.
SINUSTA is a union for taxi permit holders/drivers. SINUSTA has requested a consultation with the FTAC to obtain information about the applicability of the National Ordinance on competition in the tourism sector. During that conversation, it became apparent that within SINUSTA there are joint pricing arrangements for taxi rides to and from the airport. Further investigation by the FTAC showed that the members of SINUSTA as a collective had agreed to these price provisions with each other and actively applied them.
The National Ordinance on competition explicitly prohibits business owners, in Article 3.1, the second paragraph, under a, from making collective price agreements in the association. Business owners must, in accordance with the law, individually and independently determine the price for their product or service. In this way, competition arises and competition leads to more favorable prices and better quality and service for the consumer. Collective agreements about, for example, the price limit the consumer's freedom of choice and distort competition. Competition is also possible in regulated markets, such as the taxi industry, because taxi drivers are free to ask customers for a lower rate. But if rates are set within an association, even if the rates are lower than the statutory requirements, then competition is still distorted, and this is contrary to the National Ordinance on Competition. After all, the price might have been even lower without such a price agreement.
The FTAC has therefore instructed SINUSTA to immediately put an end to those price agreements when establishing the price determinations. The board of SINUSTA immediately showed itself willing to act in accordance with the directions of the FTAC. The members of SINUSTA are immediately informed in writing of the necessity of termination of the collective price agreement. It has been made clear to members that from now on they must individually determine their own rates if they intend to deviate from the maximum rate set by the government. SINUSTA has also posted a press release to this effect in the media and on its social media accounts.
The FTAC has concluded in its decision that the decision of SINUSTA and its members to collectively set rates deviating from the regulated rate for trips to and from the airport are contrary to the cartel prohibition as included in Article 3.1 of the National Ordinance on Competition. Given the specific circumstances of the case, the FTAC considered that informal handling was most appropriate and further action was not necessary. The FTAC will monitor the agreement and can impose measures, such as a fine if SINUSTA and its members do not continue to adhere to the agreement.
