New Fair Competition Bill sails through
DODOMA: Sellers of goods and services will now be required to display prices for each product or service, thanks to recent amendments to the Fair Competition Act designed to enhance market competition and safeguard consumers from unfair practices.
The Fair Competition Amendment Bill, 2024, introduced by Minister for Industry and Trade Dr. Selemani Jafo, passed through its second and third readings in the National Assembly yesterday and was endorsed by Members of Parliament.
Dr. Jafo highlighted that Section 17 of the Act has been repealed and replaced with a new provision mandating that sellers clearly display the price of each product or service. This amendment also prohibits sellers from charging more than the indicated price, ensuring price transparency and protecting consumers from overcharging.
The bill includes revisions to Sections 5 and 8, which introduce the concept of “joint dominance” and raise the market dominance threshold from 35% to 40%. These changes aim to address potential abuses of market power by multiple entities and align with evolving economic standards at national, regional, and international levels.
Section 9 has been updated to criminalize the “allocation of markets or customers,” making it illegal for competitors to divide markets or customers among themselves.
The bill further amends Sections 61 and 84 to allow individuals aggrieved by Tribunal decisions to appeal to a panel of three High Court judges, offering a higher judicial recourse for seeking remedies.
Revisions to Sections 11 and 13 now focus on whether a merger lessens competition, rather than automatically prohibiting certain mergers. This adjustment is intended to better reflect the competitive environment.
A new Section 11A enables the Commission to approve mergers that offer substantial public benefits, even if they would otherwise be prohibited. This section outlines criteria for such benefits to ensure that the country gains from mergers with significant public advantages.
Section 91 has been amended to eliminate the automatic stay of execution of Commission orders pending appeal to the Tribunal; stays will now be granted only upon application. This change aims to reduce frivolous litigation and expedite appeal resolutions.
Additionally, Section 83 introduces staggered tenures for Tribunal members to preserve institutional memory and ensure effective succession.
The Parliamentary Committee on Industry, Trade, Agriculture, and Livestock has urged the government to educate the public about the new price display requirement. Committee Chairman and Njombe Urban MP Deodatus Mwanyika (CCM) stressed the importance of public education through media, social networks, and stakeholder meetings to ensure compliance with the new provisions.
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The committee also recommended enhancing the Fair Competition Commission’s capabilities by increasing staff and expanding regional offices to effectively implement the amendments.
MPs further urged the minister to develop regulations within six months of the amendments’ enactment to facilitate implementation, including procedures for appealing to the High Court and providing relief from penalties for those disclosing anti-competitive agreements.
