Legislators on Thursday passed the competition Bill,2022 which aims to foster fair competition checking the anti compete behavior of firms.
According to the state minister of Industry Hon David Bahati the legislation said that this was aimed to safe guard both the consumer interests as well as market freedoms.
Meanwhile legislators further said in the absence of such legislation the regulation of competition had been applied on a sector specific basis including in the sectors of telecommunications, electricity, insurance, banking and energy.
However woman MP Christine Lamwaka representing Omoro district said some mergers may reduce competition in the market by creating or strengthening a dominant player.
She further added that the objective of examining proposed mergers , acquisitions and joint ventures was to curtail harmful effects on competition.
Clause 10 of the competition Bill,dominant organization are prohibited from abusing their position in the market.
However According to Sheema Municipality MP Hon Kateshumbwa Dicksons Collins suggested that the definition of dominant position should be extended to the government too so as to curtail discriminatory practices by the government.
He further noted the trade ministry can not regulate the government which would require a tribunal that has the power and mandate of the high court.
Meanwhile Budadiri county MP Nathan Nandala Mafabi said that a commission was good though he urged the government not to get involved in the business since they don’t pay taxes.
In addition most MP’s said there was no need for a tribunal as the government was already struggling with funds.
According to Lamwaka, the deputy chairperson of the committee on Tourism, Trade, and Industry the law said the law should be applied to all economic activities in Uganda if it was for economic gains.
Meanwhile the committee further recommended that the law be harmonized with regional agreements to which Uganda is a signatory to be aligned with the EAC.
