Uganda's Competition And Consumer Protection Act: Delayed, But All Is Well

• Law Firm: ENSafrica
• Subject Matter: Antitrust/Competition Law, Consumer Protection, Antitrust, EU Competition , Dodd-Frank, Consumer Protection Act
• Author: Phillip Karugaba and Martha Mutamba
• Published date: 22 August 2023

Uganda's recently passed Competition and Consumer Protection Act still awaits Presidential assent and coming into force. However, a recent positive resolution of an impasse relating to a Presidential directive in the media industry is a good sign for the coming law.

Background

After several stalled attempts spanning over a decade, Uganda passed the Competition and Consumer Protection Act on 25 May 2023. The primary goal of the Act is to control anti-competitive behaviour by firms that is having a negative impact on Uganda's market. The Act applies to all economic activities in Uganda and binds the government or an enterprise owned wholly or in part by the government, that engages in trade or business for the production, supply or distribution of goods or the provision of a service within a market that is open to participation by other enterprises.

The Act establishes the Competition and Consumer Protection Commission as an independent regulator to administer the law. It proscribes anti-competitive behaviour and requires notifications of mergers and acquisitions.

Uganda Broadcasting Corporation: a test case?

Uganda Broadcasting Corporation ("UBC") is a state-owned broadcasting company. It is licensed by the telecommunications regulator and competes with a multitude of private broadcasters. As fate would have it, UBC has not fared well and sought the intervention of the president to help turn around its fortune.

In March this year, even as the Competition and Consumer Protection Bill was working its way through parliament, the president directed that all government advertising would be done solely through UBC and that any accounting officer disobeying the directive would face dismissal. This directive was promptly relayed by the Ministry of Finance to all accounting officers, with the addition that print media advertising would also have to be done through the majority state-owned New Vision Printing and Publishing Company Ltd.

This directive was contrary to the government's long-standing policy of liberalisation of the economy, and it was not clear whether the directive received the approval of cabinet as would be required for a change of government policy. The constitution obligates the government to give the highest priority to enacting legislation to enhance the right of the people to equal opportunities in development. In addition, the communications sector under which UBC is regulated is one of the few with sector-specific competition regulations.

As...