Malawi Competition Commission Issues Rulings on Unfair Trade Practices
These rulings come as Malawi implements its new Competition and Fair Trading Act, which came into force on July 1, 2024.
LILONGWE, Malawi— Malawi's Competition and Fair Trading Commission has taken action against several companies for unfair business practices, including misleading conduct and hoarding essential goods during shortages, writes Winston Mwale.
The commission, which met on July 23, adjudicated 90 cases, including 77 related to unfair trading practices and 13 concerning anti-competitive business practices.
In one case, AfriPlus Steel Limited Company was referred to the Director of Public Prosecution for allegedly engaging in "misleading conduct and unconscionable conduct" in the supply of building materials.
The company is accused of accepting payments for iron sheets without having the goods in stock or the capacity to supply them within promised timeframes.
"The Commission established that by accepting payment with no intention of supplying the products, the conduct by the Respondents is deceptive, harsh, and unethical," the statement said.
Several other companies faced similar accusations related to the sale and distribution of sugar during a period of scarcity.
Chou Chou Bea Enterprise was found to be selling sugar at exorbitant prices, while Rozina Enterprise and Simama General Dealers Company Limited were accused of hoarding sugar.
The commission also ordered South African Airways to refund customers for canceled flights, ensuring the refunds reflect the value at the time of original payment to account for currency fluctuations.
In a significant ruling on market competition, the commission rejected a proposed acquisition of Glenae Poultry Farm by Go Fresh Malawi Limited, citing concerns about market dominance.
"The transaction would result in a change of the market structure and a removal of a vigorous competitor," the commission stated, noting that the merged entity would claim a 68% market share post-merger.
These rulings come as Malawi implements its new Competition and Fair Trading Act, which came into force on July 1, 2024.
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