Tanzania calls for the use of AI in the monitoring market, fair competition

DAR ES SALAAM: Deputy Minister for Industry and Trade, Patrobas Katambi, has called on the Fair Competition Commission (FCC) and the Fair Competition Tribunal (FCT) to strengthen the use of Artificial Intelligence (AI) in monitoring markets and detecting practices that undermine fair competition.

Speaking during the National Competition Day celebrations, Mr Katambi said the adoption of AI technology would enable regulatory authorities to more effectively identify anti-competitive practices such as importer boycotts, price-fixing cartels, and bid-rigging arrangements.

“AI can significantly enhance the detection of market manipulation, including situations where producers or suppliers agree on prices, restrict supply, or collude in tendering processes,” he said.

However, he cautioned that the use of AI also presents challenges, including breaches of consumer privacy and algorithmic bias.

“Therefore, the use of artificial intelligence must go hand in hand with strong consumer protection and competition safeguards to promote equity in the market and ensure the economy remains secure, competitive, inclusive and sustainable,” he said.

World Competition Day is coordinated globally by the United Nations Conference on Trade and Development (UNCTAD) and is locally organised by the FCC in Tanzania, held under the theme ‘Artificial Intelligence, Consumers and Competition Policy’.

He further explained that anti-competitive practices prohibited under competition laws worldwide fall into several categories, including anti-competitive agreements, where competitors collude to fix prices, control production volumes or engage in collective boycotts.

Other practices include bid rigging, where competitors secretly agree on how to submit tenders an act that directly harms consumers, particularly the government as well as the abuse of market power by dominant firms.

To address these challenges, the Deputy Minister urged all institutions under the Ministry of Industry and Trade to act as facilitators in creating a conducive business environment that supports traders, promotes profitability and contributes to national economic growth.

He also directed the institutions to prioritise impactful research aimed at producing practical solutions to challenges facing the industrial sector.

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“One of the key research areas should focus on artificial intelligence what these studies tell us and what economic risks or potential downturns may arise as a result of improper use of this technology,” Mr Katambi said.

He added that the institutions should also conduct compliance audits to assess whether existing policies and laws align with current expectations and the pace of national development.

“Once all these measures are implemented, a clear way forward will emerge, providing solutions that will yield positive outcomes,” he said.

Meanwhile, FCC Acting Director General, Ms Khadija Ngasongwa, said the use of AI encourages profit maximisation by reducing operational costs for investors while expanding consumer choice in the market.

She warned that the absence of clear regulations and reliance on informal competition practices could discourage both local and foreign investors due to market uncertainty.

“As the business community, we must ensure the market is properly regulated, strengthen the business environment and boost productivity among innovators,” she said.

On her part, Chairperson of the Fair Competition Tribunal (FCT) Ms Jaji Rose Ebrahim said the commemoration of the day offers an important opportunity to reflect on the role of competition in the economy particularly in protecting consumers, promoting innovation, enhancing efficiency and ensuring a level playing field for all businesses in the country.