This Act, consisting of 76 sections divided into 11 Parts, applies to all economic activities conducted within, or having an effect on, Malawi, except in relation to employment-related collective activities, intellectual property licensing and assignment arrangements, activities expressly authorized or required under international treaties to which Malawi is a party, and the legitimate self-regulation of professional associations. Under Section 4, the Act establishes the Competition and Fair Trading Commission as the authority responsible for regulating, monitoring, controlling, and preventing conduct that is likely to substantially affect competition and fair trading in Malawi. Its principal functions are to (i) keep commercial activities in, or into, Malawi under review to identify practices that may substantially affect the welfare and economic interests of consumers; (ii) conduct inquiries and market surveillance as it considers necessary or desirable in relation to matters falling within the scope of the Act; (iii) advise the Minister on matters concerning the operation of the Act, either on its own initiative or at the Minister's request; (iv) take appropriate action against abuses of a dominant position that affect consumers in a market in Malawi; (v) eliminate anti-competitive agreements affecting consumers in a market in Malawi and unfair trading practices; (vi) review and control mergers having an effect in, or into, Malawi; (vii) undertake advocacy, research, and market studies to further the objectives of the Act; (viii) cooperate with and assist associations or other bodies in developing and promoting standards to ensure compliance with the Act.
Part IV establishes the investigative and enforcement powers of the Competition and Fair Trading Commission, including (i) conducting investigations by summoning witnesses, requiring the production of documents, inspecting premises, requesting information, and seeking court-issued search warrants; (ii) issuing administrative orders to stop anti-competitive or unfair trading practices, terminate unlawful agreements, impose remedies and monetary penalties, order product recalls or refunds, and suspend problematic mergers; (iii) adopting interim measures requiring an undertaking to cease potentially infringing conduct pending the outcome of an investigation where urgent action is necessary to prevent irreparable harm or protect the public interest.
Part V establishes the substantive competition rules prohibiting agreements, concerted practices, and conduct that prevent, restrict, or distort competition in Malawi. It prohibits anti-competitive agreements, cartels, abuse of dominance, and abuse of buyer power, while providing limited exemptions where conduct generates efficiency gains or public benefits. The Part also empowers the Commission to authorize certain agreements, issue remedies and administrative penalties, provide advisory opinions, and conduct market studies and inquiries to identify and address competition concerns.
Part VII provides strong consumer protection by regulating prohibited market behaviors, unfair contract terms, and enforcement mechanisms. It (i) prohibits deceptive, exploitative, or harmful business conduct, including hoarding goods to artificially inflate prices, misleading consumers about product characteristics or pricing, and supplying unsafe products; (ii) declares contract terms that create a significant imbalance to the detriment of the consumer as non-binding; (iii) ensures that the same investigative powers, procedures, and administrative remedies used in anti-competitive conduct cases also apply to the enforcement and correction of unfair trading practices.
Finally, the Commission may request investigative assistance from, or refer cross-border competition and consumer protection matters to, regional or multilateral authorities when an enterprise’s conduct or a merger affects multiple member states. It is also required to support such regional or multilateral bodies in their investigations and to register their final determinations with the High Court, thereby making these cross-border decisions legally binding and enforceable in Malawi. In addition, the Commission is empowered to conclude written bilateral cooperation agreements with other individual States to facilitate the global enforcement of competition and consumer protection laws.