Thursday, March 28, 2024
Text Size

CFTC wins Court challenge by Airtel

The telecommunication company, Airtel Malawi Limited has lost its appeal case against the decision of the Competition and Fair Trading Commission regarding its application for authorization of an Exclusive Distribution Arrangement.

In May 2013, Airtel applied to the Commission for authorization of its Exclusive Distribution Arrangement for its recharge vouchers and other products in line with Section 44 of the Competition and Fair Trading Act Cap 48:09 of the Laws of Malawi.

In its determination of 31st July 2013, the Commission approved the Exclusive Distribution Arrangement subject to amendments of some clauses in the Standard Distribution Agreement which were found to likely aggravate the lessening of competition in the distribution of Airtel recharge vouchers and other products.

Specifically, Airtel appealed against the Commission’s order that required the company to remove or amend a clause which imposed restrictions on the use of employees engaged by designated distributors not to be used to distribute products of Airtel competitors.

In his ruling delivered in the High Court Commercial Division in Blantyre on 10th February, 2015 Justice Dr. M.C. Mtambo upheld the decision of the Commission that the clause in question was competition restrictive. The Court ruled that Airtel was, through the clause in question, attempting to regulate the business affairs and conduct of its distributors which are independent businesspersons by leveraging its dominant market power.

The court also ruled that it was within the mandate of the Competition and Fair Trading Commission to require companies that use Exclusive Distribution Arrangements in the distribution of their products or services to amend their standard agreements.

Click here for a full Judgment. 

News

Complaints Form

You can post a quick consumer complaint by filling the form below. Alternatively, Click here to download our complaints form which you can fill and drop at our offices (view map) or email to consumer@cftc.mw.

Full Name (*)

Please type your full name.
E-mail (*)

Invalid email address.
Tel/ Mobile

Invalid Input
Address

Invalid Input

Company/ Institution Involved

Invalid Input
Its Physical or Postal Address

Invalid Input
Details of Complaint

Invalid Input


Please let us know how and when to contact you.

How should we contact you?


When would you like to be contacted? (*)

Please select a date when we should contact you.

  

CFTC – Just Competition, Fair Trading

Consumer Complaints

Click here to download our complaints form which you can fill and drop at our offices (view map) or email to consumer@cftc.mw.