The Commission ordered Seedco (Malawi) Limited to apply for authorization of their exclusive distributorship and resale price maintenance schemes at wholesale level. Under the exclusive dealing arrangement, the company makes the supply of seeds dependent upon the acceptance of restrictions on the distribution of competing or other goods. This effectively limits access to markets for competitors or creates monopolies in the supply chain, thereby restraining competition and dampening prospects for consumer welfare enhancement innovations. This was a violation of Section 32 of the Competition and Fair Trading Act.
Under the resale price maintenance, the company was enforcing minimum prices in the distribution chain. Neither the exclusive dealing arrangement, nor the resale price maintenance were authorized by the Commission. As such, apart from ordering Seedco to seek authorization, the Commission ordered the company to identify distributors through a transparent and competitive process. The company was further ordered to notify distribution agreements and submit periodical compliance reports to the Commission.