PRESS STATEMENT: FREEDOM APEX LIMITED TO PAY PENALTY FEE OF K750,000 TO ICCC
The Waigani National Court delivered a precedent decision on the 24th of July 2025 and ordered one of the biggest wholesalers and retail business entity in the Highlands region, Freedom Apex Limited, to pay a penalty of K750,000 to the Independent Consumer and Competition Commission (ICCC) for failing to seek prior clearance before entering into a business transaction to acquire the other business entity.
Commissioner & CEO of the ICCC Mr. Paulus Ain welcomed this important decision on mergers and acquisitions provisions of the ICCC Act. He said, this is the first ever court decision under the ICCC Act 2002 since the establishment of the ICCC in 2002.
The ICCC commenced proceedings against Freedom Apex in 2023 after establishing that Freedom Apex acquired the business of another entity through a lease agreement for the properties and acquisition of inventory stocks through a payment schedule agreement in 2021. The ICCC through its investigations established that the business transaction value exceeded the mandatory notification threshold of K50,000,000.00, thus Freedom Apex failed to comply with the Independent Consumer and Competition Commission Act 2002 (ICCC Act). The Waigani National Court Judge, Justice Thomas Anis in his decision ordered that the defendant (Freedom Apex Limited) will pay the default penalty of K750,000, to the plaintiff (ICCC) pursuant to Section 81(7) of the ICCC Act 2002 on the basis of the defendant’s contravention of Section 81(1)(a) of the ICCC Act.
Justice Anis made this ruling based on several considerations that the action of the defendant to constituted an acquisition within the meaning of s.81(1)(a) of the assets of the said business entity.
He said this was an enforcement proceeding in which the ICCC was exercising its powers under sections 81 of the ICCC Act and that this decision should set as a deterrence to the business community.
ICCC Commissioner and Chief Executive Officer, Mr. Paulus Ain said this is the first case under the amended provisions of sections 81 and 82 of the ICCC Act where ICCC will not hesitate to take legal actions against any business who do not adhere and comply with the ICCC Act.
Mr. Ain said, we are aware of few acquisitions in the economy that have gone through with out seeking the approval of the ICCC under section 81 and 82 of the ICCC Act and it is currently undertaking its own investigation. The ICCC will take appropriate legal actions against these businesses as soon as we establish our findings. It is therefore incumbent on the acquirers to submit their “Clearance or Authorization” application to the ICCC to avoid legal challenges.
Commissioner Ain also appeals to the Business houses who intend purchase or sell their businesses or shares in the country to note the out come of this matter and consult the ICCC so you can be guided well.