New CFTA enters into force today: Commission now to order administrative fines

The Competition and Fair Trading Commission CFTC says the new Competition and Fair Trading Act—the law that protects consumers and ensures competition—has entered into force today, after successful gazetting last week. Speaking during a press briefing in Lilongwe today, CFTC Chief Executive Officer, Vincent Lloyds Nkhoma said the Commission is extremely pleased with this development as it signals an end to some of the enforcement challenges the institution was facing with regard to the old Act. “We were experiencing challenges in enforcing the old Act due to the gaps in some of the key provisions in the law.

In addition, the CFTA needed to be aligned with the recent developments in the enforcement of competition and consumer protection law, reflective of the current market dynamics in the economy. Furthermore, the CFTA required to be aligned with international best practices in the enforcement of competition and consumer protection,” said Nkhoma. Highlighting the key changes that have been made, Nkhoma said under the 1998 CFTA, when the Commission found a business enterprise in breach, it had been imposing fines, which were provided for under Section 51.



However, in 2023, in the matter of CFTC v Airtel Malawi Plc, the Court ruled that the said provision does not empower the CFTC to impose fines, on the grounds that the violations were designated as being criminal in nature. He added that in the new Act, there is a provision for administrative fines, which the Commissi.