Wednesday, August 23, 2017
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Anti-competitive business conduct

Application for authorization of an exclusive distribution arrangement by Malawi Telecommunications Limited

On 7th October 2014, the Commission received an application from the Malawi Telecommunications Limited (MTL) for authorization of an exclusive distribution arrangement for its products.

MTL submitted that the proposed exclusive distribution arrangement involved designation of distributors whose role was to purchase products (recharge vouchers) from MTL and distribute to retail traders and final consumers. It was further submitted that, under this exclusive distribution agreement, the identified distributors would be prevented from selling MTL products outside their designated areas. However, MTL itself would be allowed to distribute its products directly into any designated territories.

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Application by Chibuku Products Limited for authorization of an Exclusive Dealing Arrangement

On 5th May, 2014, the Commission received an application from Chibuku Products Limited (CPL) for authorization of an Exclusive Dealing Arrangement for its products. The Commission reviewed the application and found that although the arrangement would likely result in restricting competition in wholesaling of CPL’s products, there were some identifiable benefits to consumers from the arrangement.

The benefits included ensuring adequate availability of CPL products even to the most remote locations; ensuring that standards are maintained since it would be relatively easier to monitor; and ensuring that CPL’s products are available at reasonable prices across the country.

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Anti-competitive business practices by Illovo Sugar Company and Simama General Dealers

The Commission received a complaint from Karonga Business Association alleging that Illovo Sugar Company Ltd and Simama General Dealers were engaging in anti-competitive business practices. In particular, the Association alleged as follows:

  1. That Illovo had granted Simama monopoly powers or control of the sugar distribution chain in Karonga and the surrounding districts i.e  Simama was involved in sugar transportation, warehousing, wholesaling and retailing.
  2. That, by selling sugar at wholesale and retail prices, Simama was undercutting competitors;
  3. That Simama was refusing to sell sugar to competitors in areas where the company had sugar outlets.
  4. That customers who bought sugar from the warehouse were compelled to use Simama’s transport.

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Alleged Predatory Conduct by Chibuku Products Limited

On 30th October, 2013, the Commission launched investigations into alleged predatory conduct by Chibuku Products Limited as submitted by Chimera Breweries Limited. Specifically, Chimera alleged that Chibuku Products Limited was spying on operations of Chimera Breweries Limited and incited people in Chikwawa to block the establishment of their factory. During the investigations, the complainant failed to provide more information regarding the same hence the case was closed.

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CFTC – Just Competition, Fair Trading

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