Competition and Fair Trade Commission (CFTC) says TNM plc and Super League of Malawi (Sulom) decision to impose the use of the Mpamba Khadi Mbambande as the only means of paying for TNM Super League matches’ tickets is illegal since they did not get authorisation.
It says exclusive use of the debit card falls under ‘exclusive dealing’ arrangement which requires the parties involved to get approval from the commission to ensure consumers’ rights are protected according to Competitions and Fair Trade Commission Act of 2024.
CFTC public relations officer Innocent Helema said in an interview that they did not authorise Sulom and TNM to use Mpamba Khadi Mbambande as the only means of buying TNM Super League matches tickets.
He said: “Parties to any proposed exclusive dealing arrangement are required to apply for authorisation by the Competition and Fair Trading Commission as provided for under Section 30 of the Competition and Fair Trading Act of 2024.
“It is upon that application that the commission conducts its assessments to ascertain whether the proposed agreement will generate positive or negative effects on the relevant markets.”
Helema said TNM only inquired about the process last year and was advised on the procedure.
He said: “In May 2023 TNM requested CFTC for guidance regarding their intention to venture into exclusive e-ticketing solutions and the commission advised them that their intention amounted to an exclusive dealing arrangement, therefore, they needed to apply with the commission for authorisation.
“According to our records, they have not yet applied for the authorization to date.”
However, TNM and Sulom on Monday went on to announce that from December 1, only those with Mpamba Khadi Mbambande will have access to buy the TNM Super League match tickets.
The development has drawn mixed reactions as some football fans feel they are being forced to acquire the card against their will, thereby violating their rights as consumers.
CFTC says this is illegal as TNM and Sulom do not have such authorisation.
“TNM has not yet applied for the authorisation of the exclusive e-ticketing solutions. Thus, there is no authorisation of that arrangement yet,” said Helema.
He said TNM has to apply for authorisation which may only be granted if it is satisfied upon assessment that the arrangement will not short-change consumers and competitions.
Said Helema: “Once applied for, the commission will conduct its assessments and basing on the findings of its assessments, it will either grant with conditionalities or decline authorisation.
“CFTC always advises enterprises to seek authorisation of any proposed business arrangements prior to implementation of the same so that the commission should appreciate beforehand and offer appropriate remedies to envisaged challenges so as to safeguard both consumer welfare and competition
