Competition and Fair Trading Commission Malawi Enhances Regulatory Powers

The Competition and Fair Trading Commission (CFTC) of Malawi plays a pivotal role in fostering a competitive market and protecting consumer welfare. With the enactment of the Competition and Fair Trading Act, 2024, which replaced its 1998 predecessor, the CFTC's mandate and enforcement powers have been significantly enhanced. Public communications, such as "Company Profiles" in press releases, serve as crucial mechanisms for the CFTC to inform stakeholders about regulatory actions, including merger approvals, enforcement decisions against anti-competitive practices, and consumer protection violations. These profiles highlight the Commission's commitment to transparency and accountability, providing essential guidance for businesses and legal practitioners navigating Malawi's evolving regulatory landscape, particularly in light of the new mandatory merger notification thresholds and increased administrative penalties.

The Competition and Fair Trading Commission (CFTC) of Malawi stands as the primary regulatory body tasked with ensuring fair competition and protecting consumer interests within the Malawian economy. Its role has gained renewed prominence following the recent overhaul of the country's competition law framework. The enactment of the Competition and Fair Trading Act, 2024, effective July 1, 2024, marks a significant legislative development, granting the CFTC broader powers and introducing more stringent compliance requirements for businesses operating in Malawi.

In this dynamic regulatory environment, the CFTC's public communications, including press releases detailing "Company Profiles," are invaluable. While the term "Company Profile" on the CFTC's website might refer to its own organizational structure, in the context of a press release, it typically signifies a public announcement concerning a specific company's interaction with the Commission. These announcements often relate to critical regulatory outcomes, such as decisions on mergers and acquisitions, findings from investigations into anti-competitive conduct, or rulings on consumer protection infringements. Such disclosures are vital for promoting transparency, guiding market behaviour, and ensuring adherence to the updated legal provisions.

The legal foundation for competition and fair trading in Malawi is primarily laid out in the Competition and Fair Trading Act, 2024 (the Act), which repealed and replaced the Competition and Fair Trading Act of 1998. This new legislation, which came into force on July 1, 2024, significantly strengthens the CFTC's regulatory mandate, aligning it with international best practices in competition and consumer protection law. The CFTC itself was established under Section 4 of the Act, with a broad mandate to regulate, monitor, control, and prevent acts or behaviours that could adversely affect competition and fair trading in Malawi.

Prior to the 2024 Act, a notable challenge to the CFTC's enforcement capabilities arose from the High Court's ruling in *CFTC v Airtel Malawi Plc, Civil Appeal Cause No. 17 of 2023*. This judgment held that the Commission lacked the authority to impose administrative fines under the 1998 Act, significantly weakening its regulatory teeth. The new Act directly addresses this by explicitly empowering the CFTC to issue administrative orders, including substantial financial penalties of up to 5% of annual turnover for individuals and up to 10% of annual revenue for companies found in violation. Furthermore, the Act has expanded provisions on anti-competitive business practices, introduced mandatory notification for mergers and acquisitions based on determined thresholds, and broadened the definition of 'consumer' to enhance protection against unfair trading practices.

The CFTC's issuance of "Company Profiles" in press releases serves as a critical tool for operationalising its mandate under the Competition and Fair Trading Act, 2024. These profiles typically detail the Commission's findings and decisions relating to specific enterprises, thereby fostering market transparency and compliance. Such announcements frequently fall into two main categories: enforcement actions against anti-competitive practices or unfair trading, and decisions concerning mergers and acquisitions.

In the realm of enforcement, the CFTC actively investigates and adjudicates cases involving a range of prohibited conduct. Recent examples illustrate the Commission's robust approach, with companies being penalised for misleading conduct, unconscionable conduct, supplying defective goods, non-disclosure of material information, and engaging in excessive or exploitative pricing. For instance, the CFTC has ordered significant administrative monetary fines and consumer refunds, as seen in its 75th Meeting in May 2026, where six companies were ordered to pay fines totalling MK361 million and refunds exceeding MK126 million. Notably, Standard Bank Malawi was fined MK100 million for unconscionable conduct related to altered loan agreements, and FDH Bank plc faced a MK200 million penalty for misleading conduct and unfair contract practices concerning Keyman insurance. These cases underscore the CFTC's enhanced powers under the 2024 Act to impose substantial penalties and compel redress, a direct consequence of the legislative amendments following the *Airtel Malawi* ruling.

Regarding merger control, the 2024 Act introduced a significant shift from voluntary to mandatory notification for mergers and acquisitions that meet specific financial thresholds. These thresholds, gazetted in December 2024, require notification if the combined annual turnover or assets of the merging parties in Malawi equal or exceed MWK 10 billion, or if the annual turnover of the target undertaking exceeds MWK 5 billion. Merger application fees are now set at 0.5% of the combined turnover or total assets. The CFTC uses "Company Profiles" to announce its decisions on such notifications, including approvals, prohibitions, or approvals with conditions, ensuring that transactions do not negatively impact competition or the broader economy. For example, the Commission has recommended mergers for authorisation, including those from the COMESA region, and approved asset acquisitions with specific conditions to protect employees and maintain market diversity.

These public "Company Profiles" serve not only as a record of the CFTC's actions but also as a deterrent against future infringements. By detailing the nature of the violation, the companies involved, and the penalties imposed, the Commission aims to raise awareness among businesses and consumers about their rights and obligations under the Act. This commitment to transparency is explicitly stated in the CFTC's core values and its mission to create a competitive and fair market environment through regulation, enforcement, and advocacy.

The Competition and Fair Trading Commission of Malawi, empowered by the robust Competition and Fair Trading Act, 2024, is actively shaping the country's economic landscape through vigilant enforcement and transparent communication. For legal practitioners, staying abreast of the CFTC's "Company Profiles" and other press releases is no longer merely advisable but essential. These publications offer direct insights into the Commission's interpretation and application of the new Act, highlighting areas of particular regulatory focus and setting precedents for compliance.

Businesses operating in Malawi must proactively review their practices to ensure full compliance with the expanded provisions of the 2024 Act, especially concerning mandatory merger notifications, anti-competitive conduct, and consumer protection standards. The increased administrative penalties and the CFTC's demonstrated willingness to impose significant fines and orders for redress underscore the critical need for robust internal compliance frameworks. Practitioners should advise clients on conducting thorough competition law audits, updating contract terms, and enhancing consumer interaction protocols to mitigate legal and financial risks in this strengthened regulatory environment. The CFTC's ongoing efforts will undoubtedly continue to define the parameters of fair competition and consumer welfare in Malawi, necessitating continuous monitoring and adaptive legal strategies.