By Bester Kayaye
As Malawi joins the rest of the world in commemorating the World Competition Day, the Competition and Fair Trading Commission (CFTC) says a policy addressing concentration and abuse of market power is an indispensable tool..
Addressing a gathering when celebrating the day, CFTC acting executive director Apoche Itimu, said the advent of COVID-19 has seen a sharp rise in the misuse of market power by large business enterprises that frustrate smaller ones from participating and competing fairly in the country’s trade activities.
Itimu noted that as the socio-economic impact of the pandemic continues to erode the gains posted as a result of globalization, existing economic inequalities within and between countries are also increasing the gap between the rich and the poor.
“It has been observed that big enterprises have become bigger while small ones have suffered the most and in some cases have even collapsed,” she said and suggested the need to address abuse of buyer’s power under the fair competition law and policy regarding aspects of labour, farmer welfare and supply chain contracts.
She also expressed dismay over unfair trading practices that impede the achievement of an inclusive digital economy. “The boom in e-commerce is essential for economic recovery and inclusivity,” she said also observing the need to protect the digital space
Itimu further warned traders not to engage on any anticompetitive trade practices, especially during festive season when many traders take advantage of unsuspecting consumers to sell or buy goods at manipulated prices
The celebrations were held under the theme “Competition Policy for an inclusive and Resilient Economy”,
Commemoration of the Competition is a tradition that dates back to December 5, 1980 when the United Nations adopted the international standard for competition laws attributed as “the Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices” popularly known as the United Nations Set of Principles and Rules on Competition.
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