Fair Competition Act 2015

ISSN 0856 - 035X
THE UNITED REPUBLIC OF TANZANIA
BILL SUPPLEMENT
20th February, 2015
No. 5
to the Gazette of the United Republic of Tanzania No.8 Vol. 96 dated 20th February, 2015
Printed by the Government Printer, Dar es Salaam by Order of Government
THE FAIR COMPETITION (AMENDMENT) ACT, 2015
ARRANGEMENT OF SECTION
Section
Title
PART I
PRELIMINARY PROVISIONS
1.
Construction
PART II
GENERAL AMENDMENTS
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Amendment of the long title

Amendment of section 1
Addition of a section 9A
Fair Competition (Amendment) Act

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13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
Amendment Part II
Addition of sections 30A, 30B and 30C
Amendment of a section 36A
Addition of section 60A
Amendment of Part XIII
Addition of sections 83A, 83B, 83C and 83D

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49.
50.
51.
52.
53.
54.
55.
Addition of sections 86A and 86B
Addition of section 91A
Amendment of the Second Schedule
Addition of the Third Schedule
_________
SCHEDULE
_________

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NOTICE
_______
This Bill to be submitted to the National Assembly is published for general

information to the public together with a statement of its objects and reasons.
Dar es Salaam,
3rd February, 2015
OMBENI Y. SEFUE
Secretary to the Cabinet
A BILL
for
An Act to amend the Fair Competition Act with a view to making better
provisions for effective implementation and enforcement of the Fair
Competition Act.
ENACTED by Parliament of the United Republic of Tanzania.
PART I
PRELIMINARY PROVISIONS
Construction
Cap. 285
1. This Act may be cited as the Fair Competition (Amendment)

Act, 2015 and shall be read as one with the Fair Competition Act,
hereinafter referred to as the principal Act.
PART II
GENERAL AMENDMENTS
General
amendment
Amendment of
section 1
2. The principal Act is amended by deleting the phrase Fair

Competition Commission whereever it appears in the Act and
substituting for it the phrase Fair Competition and Consumer Protection
Commission.
3.
The principal Act is amended
in section 1 by deleting

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subsection (1) and substituting for it the following:

Cap. 285
(1) This Act may be cited as the Fair
Competition and Consumer Protection Act..
Amendment of
section 2
4. The principal Act is amended in section 2, by(a) deleting the phrase Fair Competition Tribunal appearing in
the definition of the term Tribunal and substituting for it the
phrase Fair Competition Appeal Tribunal;
(b) adding the following new definitions in their appropriate
alphabetical order:
aids to trade include services such as banking, insurance,
transportation, warehousing, advertisement and
other related services;
commerce means trade and aids to trade;
court means a court of competent jurisdiction;
TCAA means the Tanzania Civil Aviation Authority;
TCRA means the Tanzania Communications Regulatory
Authority;; and
(c) deleting corresponding interpretation of the terms, and
substituting for them the following terms:
consumer means any person who purchases or offers to
purchase goods or services and includes any user
or beneficiary of such goods or services otherwise
than for the purpose of the sale but does not
include a person who purchases or offers to
purchase any goods or services for the purpose of
production or manufacture of any goods or articles
for sale;
trade means buying and selling goods or services or
includes wholesale, retail, import and export; and
Minister means the Minister for the time being
responsible for the Commission, Tribunal and
National Consumer Advocacy Council;
Amendment of
section 5
5. The principal Act is amended in section 5, by adding a new

subsection (7) immediately after subsection (6) as follows:

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(7) Notwithstanding subsection (6), where two or more

firms exercise dominance in a market they may be regarded as
they have dominance jointly in that market..
Amendment of
section 6
6. The principal Act is amended in section 6(1), by deleting the

words and commence immediately after the word trade.
Amendment of
section 7
7. The principal Act is amended in section 7, by adding a new

paragraph (e) immediately after paragraph (d) as follows:
(e) by any person in relation to any other conduct and
transactions outside Mainland Tanzania which affect
competition within Mainland Tanzania..
Amendment of
section 8
8. The principal Act is amended in section 8, by deleting the

words intentionally or negligently appearing in subsection (7).
Amendment of
section 9
9. The principal Act is amended in section 9:

(a) in subsection (1), by adding immediately after paragraph (d)
the following new paragraph:
(e) allocation of markets or customers.;
(b) in subsection (2), by adding immediately after paragraph (d)
the following new paragraph:
(e) allocation of markets or customers means to divide
a market between competitors so as to limit the right
to do business within a defined geographical
territory, a defined product category, or to certain
specified customers with result of eliminating or
restraining competition between competitors.; and
(c) in subsection (4), by deleting the words intentionally or
negligently..
Addition of a
section 9A
10. The principal Act is amended by adding immediately after

section 9 the following new section 9A:
Executing
9A. For the purpose of section 9, the
leniency
Commission
may execute a leniency
programme
programme reducing applicable penalty to a

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person who engages in anti-competitive

conducts as long as that person effectively
cooperates during investigation and subsequent
administrative measures undertaken in relation
to such anti-competitive conduct.
Amendment of
section 10
11. The principal Act is amended in section 10(a) by deleting subsections (2) and (3) and substituting for them
the following:
(2) For purposes of subsection (1),(a) a person holding a dominant position in a relevant
market shall not(i) impose unfairly high selling or low purchasing
prices or other unfair trading conditions;
(ii) limit the production or technical development
and innovation to the prejudice of consumers;
(iii) discriminate consumers or suppliers on the
grounds of nationality or residence; or
(iv) any other such related conduct;
(b) a person holding a dominant position in a relevant
market shall not engage in any conduct that excludes,
or is intended to exclude its competitors from the
market by means of(i) predatory pricing;
(ii) price squeezing;
(iii) cross subsidizing; or
(iv) any other such related conduct;
(c) a person holding a dominant position in a relevant
market shall not engage in any conduct that harms the
competitive position of other competitors by(i) refusal to deal;
(ii) refusal of access to an essential facility;
(iii) tying arrangements;
(iv) unjustifiably discriminating among customers or
suppliers; or
(v) any other such related conduct; or

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(d) a person holding a dominant position in a relevant

market shall not engage in any conduct whereby(i) the resale prices or conditions are directly or
indirectly fixed;
(ii) customers or competitors are foreclosed from
access to sources of supply or from access to
outlets;
(iii) movement of goods or services between different
geographical areas is restricted;
(iv) an intellectual property right is used in any way
that goes beyond the limits of its legal protection;
or
(v) any other such related conducts.;
(b) by renumbering subsection (4) as subsection (3); and
(c) by deleting the words intentionally or negligently appearing
in subsection (3) as renumbered.
Amendment of
section 11
12.The principal Act is amended in section 11, by(a) adding immediately after subsection (2) the following new
subsections (3):
(3) Within fourteen days after receipt of a merger
notification issued under subsection (2), the Commission
shall determine on completeness of filing the
notification;;
(b) renumbering subsections (3), (4), (5) and (6) as subsections
(4), (5), (6) and (7) respectively; and
(c) deleting(i) the figure 14 appearing in the renumbered
subsection (4) and substituting for it figure 30;
(ii) the renumbered subsection (7) and substituting for it
the following:
(7) When determining whether or not a
merger creates or strengthens a position of
dominance or is likely to substantially prevent or
lessen competition, the Commission shall assess
the strength of competition in the relevant market

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by taking into account any factor that is relevant

to competition in that market, including(a) actual potential level of import
competition in the market;
(b) ease of entry and exit into the
market, including tariff and
regulatory barriers;
(c) level of concentration in the
market;
(d) degree of countervailing power in the
market;
(e) likelihood that the merger would result
in the acquirer being able to
significantly and sustainably increase
prices or profit margins;
(f) extent to which substitutes are
available in the market or are likely to
be available in the market;
(g) efficiencies in the market, including
growth, innovation and product
differentiation;
(h) a possibility whether the merger will
result in the removal of effective
competitor; and
(i) the nature and extent of vertical
integration in the market; and
(8) Where the merger is likely to create or
strengthen a position of dominance in the market
(that substantially lessens the competition), the
Commission shall determine whether the merger
benefits or is likely to benefit the public in one or
more of the following ways(a) by contributing to greater efficiency in
production or distribution;
(b) by promoting technical or economic
progress;

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(c) by contributing to greater efficiency in

the allocation of resources;
(d) by protecting the environment and the
merger;
(e) by preventing, restraining or distorting
is competition no more than is
reasonably necessary to attain those
benefits; or
(f) the benefits to the public resulting
from the merger outweigh the
detriments caused by preventing,
restraining or distorting competition.
(9) Where the merger is likely to create or
strengthen a position of dominance in the market
(that substantially lessens the competition), the
Commission shall determine, in case of a merger
resulting in the change of control of a business,
the business faces actual or imminent financial
failure and the merger offers the least anticompetitive alternative use of the assets of the
business.
(10) After examining the merger, the
Commission may(a) approve the merger;
(b) approve the merger subject to
conditions;
(c) prohibit implementation of the
merger; or
(d) grant an exemption to the merger for
a period not exceeding one year.
(11) The Commission may, either in its
own motion or upon application by a party,
review its own decision to approve or
conditionally approve a merger if it is satisfied
that(a) the decision was based on incorrect
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information;
(b) the approval was obtained by deceit;
(c) the firm concerned has breached an
obligation or condition attached to the
decision; or
(d) in
case
of
exemption,
the
circumstances
since
grant
of
exemption have materially changed.
(12) A party to a merger who(a) fails to notify the merger as required
by this section;
(b) implements a merger contrary to the
decision
by
the
Commission
prohibiting that merger; or
(c) implements the merger without the
approval of the Commission as
required by this Act,
commits an offence.
(13) A party to a merger who implements
the merger in a manner that contradicts the
condition for the approval imposed by the
Commission commits an offence and is liable, on
conviction, to a fine of not less than 1.5 percent
of his annual turnover..
Amendment of
Part II
Amendment of
section 13
13. The principal Act is amended in Part II by re-arranging section

12 as section 10, section 10 as section 11 and section 11 as section12.
14. The principal Act is amended by repealing section 13.
Amendment of
section 25

word Court wherever it appears in that section and substituting for it the
words, Commission or Court.
Addition
of
sections 30A,

section 30 the following new sections:
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30B and 30C
Amendment of
section 33
Requirement
to display
price
30A (1) A supplier shall not display any

goods for sale without displaying their prices.
(2) For the purposes of this section,
price means a charge of any description.
Disclaimer
clauses
30B A supplier shall not display or

cause to be displayed any sign or notice that
purports to disclaim any liability or deny any
right that a consumer has or would have under
this Act or any other written law.
Offences
30C. A supplier who fails to comply

with sections 30A or 30B, commits an offence,
and is liable, on conviction(a) in case of a natural person, with an
annual turnover from fifty million
shillings, to a fine of not less than
five hundred thousand shillings and
not exceeding five million shillings;
and
(b) in case of a body corporate, to a fine
of not less than six million shillings
and not exceeding ten million
shillings..
17. The principal Act is amended in the closing statement of

section 33(a) subsection (1) and (2) by substituting the words a court of
competent jurisdiction for the words, Commission or court;
(b) subsection (6)(b) by substituting the words court and
judgement for the words, Commission or court and order
or judgement respectively;
(c) subsection (7)(b) and (c) by substituting the word court; for
the words, Commission or court;
(d) subsection (8) by substituting the word judgement wherever
the word appears in the subsection for the words, order or
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judgement;
(e) subsection (10) by substituting the word judgement
wherever it appears in the subsection for the words, order or
judgement;
(f) subsection (11) by substituting the word court wherever it
appears in the subsection for the words, Commission or
court; and
(g) subsection (12) by substituting for the word court wherever
it appears in the subsection the words, order or judgement.
Amendment of
section 36
18. The principal Act is amended in section 36, by(a) designating section 36 as section 36(1);
(b) inserting the words reviewed and immediately before the
word registered appearing in the fourth line of the
designated subsection (1);
(c) adding immediately after the designated subsection (1) the
following new subsections(2) A person who(a) does not submit Standard Form Contracts
for Review;
(b) uses an unauthorized variation of registered
Standard Form Contract terms; or
(c) uses unfair contractual terms,
commits an offence and shall on conviction be liable(i) in the case of a natural person, with an
annual turnover from fifty million
shillings to a fine of not less than five
hundred thousand shillings and not
exceeding five million shillings; and
(ii) in the case of a body corporate, to a fine
of not less than six million shillings and
not exceeding ten million shillings.
(3) A person who holds a dominant position in
the market who uses unfair contractual terms, commits
an offence and is, on conviction, liable to a fine of not
less than fifty million shillings and not exceeding eighty
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million shillings or 0.5 percent of that persons annual

turnover and preceding business year..
Addition of a
section 36A
19. The principal Act is amended by adding the following new

section immediately after section 36:
Unfair
36A.-(1) A contract shall be regarded as
contract
unfair if it causes a significant imbalance to the
parties rights and obligations arising under the
contract, to the detriment of the consumer.
(2) The contract referred to under
subsection (1) shall be unenforceable against the
consumer.
(3) Notwithstanding subsection (2), the
contract shall bind the parties if it is capable of
being enforced without the unfair term..
Amendment of
section 38

section 38(1), by substituting for(a) the words has little the words, he is liable; and
(b) the word court of competent jurisdiction the words,
Commission or court.
Amendment of
section 39

section 39(1), by substituting the words competent jurisdiction for the
words, Commission or court.
Amendment of
section 40

section 40(1), by substituting the words court of competent jurisdiction
for the words, Commission or court.
Amendment of
section 41

Amendment of
section 42

section 42 subsections (1) and (4), by substituting the words court of
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Competent jurisdiction for the words, Commission or court.

Amendment of
section 43

Amendment of
section 44

section 44(b), by substituting the words court of competent jurisdiction
Amendment of
section 47
27. The principal Act is amended in section 47(3), by substituting

the word court, for the words, Commission or court.
Amendment of
section 50
28. The principal Act is amended in section 50 by(a) deleting the words Act No. 3 of 1975 appearing in the
marginal note and substituting for them the words Cap. 130;
and
(b) deleting the figure 1975 appearing in subsection (1).
Amendment of
section 53
29. The principal Act is amended in section 53(9), by deleting(a) the phrase fifty thousand and not exceeding one million
shillings appearing in paragraph (a) and substituting for it
the followingfive hundred thousand shillings and not exceeding five
million shillings; and
(b) the phrase one hundred thousand shillings and not exceeding
five million shillings and substituting for it the followingsix million shillings and not exceeding ten million
shillings.
Amendment of
section 56
30. The principal Act is amended subsection (2) of section 56, by(a) deleting the phrase fifty thousand shillings and not
exceeding one million shillings appearing in paragraph (a)
and substituting for it the followingfive hundred thousand shillings and not exceeding
five million shillings; and
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(b) deleting the phrase one hundred thousand shillings and

not exceeding five million shillings and substituting for it
the followingsix million shillings and not exceeding ten million
shillings.
Amendment of
section 58
31. The principal Act is amended(a) in section 58, by deleting the words other than under Parts VI
and VII appearing in subsection (6); and
(b) by deleting subsection 12.
Amendment of
section 59
32. The principal Act is amended in section 59:

(a) subsection (1) by deleting the words (other than under Part
VI or VII); and
(b) by deleting subsections (6) and (7) and substituting for them
the following:
(6) The Commission may, in determining
consumer complaints, adopt the alternative dispute
resolution mechanism..
Amendment of
section 60
33. The principal Act is amended in section 60, by(a) deleting subsection (1) and substituting for it the following(1) Unless otherwise provided under this Act,
where a person commits an offence(a) against this Act other than under sections 58, 59
or 88 he shall be liable, on conviction, to a fine
of not less than five percent of his annual
turnover and not exceeding ten percent of his
annual turnover; and
(b) in contraventions of section 9, he shall be liable,
on conviction to a fine of not less than fifteen
percent of his annual turnover but not
exceeding thirty percent of his annual turnover,
in the preceding business year.;
(b) adding immediately after subsection (3) the following new
subsection (4):
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(4) For purposes of subsection (3), where a

director, manager, or officer of a body corporate(a) violates any of the provision of this Act, he
shall be liable, on conviction, to a fine of not
less than five million shillings or imprisonment
for a term of two years, or to both; or
(b) violates section 9, he shall be liable, on
conviction, to a fine of five to ten percent of
the fine imposed to the legal person or to
imprisonment for a term of three years or
both.;
(c) deleting subsections (5), (6) and (7) and substituting for them
the following:
(6) Notwithstanding compensatory or compliance
orders under this Act, the Commission shall:
(a) on contravention of Part III(i) in case of a natural person impose a
fine of not less than ten million
shillings and not exceeding twenty
five million shillings or 1.5 percent of
his annual turnover in the preceding
business year; and
(ii) in case of a body corporate impose a
fine of not less than twenty five
million shillings and not exceeding
fifty million shillings or three percent
of his annual turnover in the preceding
business year; and;
(b) on contravention of Part IV(i) in case of a natural person impose a
shillings and not exceeding twenty five
million shillings or 1.5 percent of his
annual turnover in the preceding
business year; and
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fine of not less than twenty five million

shillings and not exceeding fifty
million shillings or three percent of his
business year; and;
(c) on contravention of Part V(i) in case of a natural person impose a
business year or; and
business year; and;
(d) on contravention of Part VI(i) `in case of a natural person impose a
fine of not less than five hundred
thousand shillings and not exceeding
business year or; and; and
fine of not less than five million
shillings and not exceeding ten million
shillings or one percent of his annual
turnover in the preceding business year
or; and
(e) on contravention of Part VII(i) in case of a natural person impose a
fine of not less than five hundred
thousand shillings and not exceeding
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business year and
fine of not less than five million
shillings and not exceeding ten million
shillings or one percent of his annual
turnover in the preceding business
year; and
(f) on contravention of Part VIII(i) in case of a natural person impose a
business year; and
business year; and;
(g) on contravention of Part IX(i) in case of a natural person impose a
business year; and
fine of not less than twenty five
million shillings and not exceeding
fifty million shillings or three percent
of his annual turnover in the preceding
business year; and
(d) by renumbering subsections (4) and (8) as
subsections (5) and (7).
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Addition of a
section 60A
Amendment of
section 62
34. The principal Act is amended by adding the following new

section immediately after section 60:
Enforcement of
60A.-(1) Subject to the provisions of
orders of the
this Act, the orders of the Commission shall
Commission
be enforceable as orders of the High Court in
Caps 33 and 20
accordance with the Rules made under the
Civil Procedure Code or the Criminal
Procedure Act.
(2) For the purposes of subsection (1),
the High Court may direct the enforcement to
be effected by a Magistrates court..
35. The principal Act is amended in section 62, by(a) adding immediately after subsection (4) the following new
subsections:
(5) Notwithstanding the provisions of this
section, the Attorney General shall have the right to
intervene in any suit or matter instituted in the court
by, or against the Commission or Tribunal.
(6) Where the Attorney General intervenes in
any matter in pursuance of subsection (5), the
provisions of the Government Proceedings Act shall
Cap. 6
apply in relation to the proceedings of that suit or
matter as if it had been instituted by, or against the
Government.
(7) For the purposes of subsections (5) and
(3), the Commission or Tribunal shall have a duty to
notify the Attorney General of any impending suit or
intention to institute a suit or matter by, or against the
Commission or Tribunal.; and
(b) deleting subsection (6) and substituting for it the following:
(9) The Commission, shall consist of the following
members(a) a Chairman, who shall be a non-executive
appointed by the President;
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(b) three non-executive members appointed by the

Minister; and
(c) the Director-General..
(c) adding immediately after subsection (9) the following:
(10) The Chairman of the Commission shall,
before assuming his duties of the office take and
subscribe an official oath as set out in the Third
Schedule to this Act.
(11) The oath shall be administered to by the
President..
(d) deleting the word civil appearing in subsection (9); and
substituting for the word personal; and
(e) renumbering subsections (5), (6), (7), (8), (9), (10) and (11) as
subsections (8), (9), (10), (11), (12), (13) and (14)
respectively.
Amendment of
section 63
36. The principal Act is amended in section 63, by deleting

subsection (6) and substituting for it the following(6) The Chairman and members of the Commission
shall be appointed for the following fixed terms, in case of(a) the Chairman, three years;
(b) the Director-General, four years; and
(c) three non-executive members, three years..
Amendment of
section 64

paragraph (f) and substituting for it the following:
(f) a member has committed a material breach of the
Code of Conduct for Members and Employees of the
Commission or a material breach of the provisions of
this Act..
Amendment of
section 71

subsections (5) and (6) and substituting for them the following:
(5) Where the Commission has reason to believe that a
person is in possession or control of any goods or documents that
may assist in the performance of any of its functions, the
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Chairman of the Commission, the Chairman of the Tribunal, or the

Director-General or any member of the Commission, authorized
by the Chairman on that behalf, may issue a warrant authorizing
any staff of the Commission, accompanied by a police officer, to
enter into the premises to conduct search, and seize any item
relevant to the investigation and seal the premises.
(6) Any person who(a) knowingly gives false or misleading information or
evidence in purported compliance with a summons;
(b) without lawful excuse refuses or fails to comply with a
summons; or
(c) knowingly gives false or misleading information in
compliance with the request of information by the
Commission,
commits an offence and shall be liable on conviction in case of a
person being a body corporate to a fine not exceeding one percent
of the total turnover in the preceding business year.
(7) Notwithstanding subsection (5), for purposes of investigation
under Parts III to IX, search may be conducted without warrant.
(8) A person who obstructs an officer, destroys, falsifies or
conceals documents during a search, commits an offence and is liable on
conviction to a fine not exceeding one percent of the total turnover in the
preceding year..
Amendment of
section 73
39. The Principal Act is amended in section 73, by(a) deleting the word Commission appearing in subsections (1),
(2), (3), (4) and (7) and substituting for each of them the
phrase members of the Commission.
(b) deleting subsection (8) and substituting for it the following:
(8) Minutes of resolution signed by all members
of the Commission shall constitute a valid resolution of
the Commission as if it were dully passed at a validly
constituted meeting of the members of the
Commission..
Amendment of
40. The principal Act is amended in section 74, by-
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section 74
(a) deleting subsection (1) and substituting for it with the

following(1) Members of the Commission may delegate to
any member of the Commission, either generally or
otherwise as may be provided in the instrument of
delegation, any of its powers other than the power(a) to make decisions under Part II of the Act;
(b) of delegation; and
(c) to revoke or vary delegation.; and
(b) deleting the word Commission appearing in subsection (3)
and substituting for it the phrase members of the
Commission.
Amendment of
section 77
41. The principal Act is amended in section 77, by(a) deleting the words to offences committed under appearing in
paragraph (a) of subsection (3) and substituting for it the word
of; and
(b) deleting figure 74 appearing under subsection (5) and
substituting for it the figure 76.
Amendment of
section 78

words Tanzania Communication Regulatory Authority and Tanzania
Civil Aviation Authority appearing in paragraph (c) and substituting for
them the acronyms TCRA and TCAA respectively.
Amendment of
section 81

subsection (1) and substituting for it the following:
(1) Before 31st March each year, the Commission
shall prepare an Annual report in respect of that year
preceding 30th June and submit it to the Minister before 30th
June of that year..
Amendment of
Part XIII
44. The principal Act is amended in Part XIII by deleting the title
and substituting for it the following:
THE FAIR COMPETITION APPEAL TRIBUNAL.
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Amendment of
section 83
Addition of
sections 83A,
83B, 83C and
83D
45. The principal Act is amended in section 83, by(a) deleting the words Fair Competition Tribunal appearing in
subsection (1) and substituting for them the words Fair
Competition Appeal Tribunal;
(b) inserting immediately after subsection (2) the following new
subsections:
(3) A person shall not be a member of the Tribunal
if that person(a) is an office bearer of any political party;
(b) is declared bankrupt; or
(c) has been convicted of a criminal offence and
sentenced to imprisonment without the option
of a fine.
(4) A member of the Tribunal shall, before
assuming his duties of office, take and subscribe an official
oath as set out in the Third Schedule to this Act.
(5) The oath referred under subsection (4) shall be
administered by the President.
(6) Subject to subsections (2) and (9) when
appointing members of the Tribunal, the President shall
ensure that tenure of office of members of the Tribunal are
staggered.;
(c) renumbering subsections (3),(4),(5); and (6) as subsections (7),
(8), (9) and (10) respectively.
46. The principal Act is amended by inserting the following new
sections, immediately after section 83:
Deputy
83A.-(1) Members of the Tribunal
Chairman of the
may elect from among themselves one
Tribunal
member who qualifies to be appointed as a
Judge of the High Court to be a Deputy
Chairman.
(2) The Deputy Chairman shall
perform the functions of the Chairman
whenever(a) the office of the Chairman is
24

___________________________________________________________
vacant; or
(b) the Chairman is for any other
reason unable to perform the functions of a
Chairman.
Code of
Conduct
83B.-(1) The Tribunal shall adopt a

Code of Conduct for the members and
employees of the Tribunal in the performance
of their duties.
(2) The Code of Conduct adopted
under this section shall be binding on the
Tribunal, its members and employees.
Removal from
office
83C.-(1)
Notwithstanding
the
provisions of section 83(9), the President
may, on recommendation of the Attorney
General, remove a member from office where
a member(a) has
committed
a
serious
misconduct;
(b) is incapable of carrying out his
duties due to ill health, physical or
mental impairment;
(c) has committed a material breach of
the provisions of this Act or a
Code of Conduct to which the
Tribunal is subject;
(d) has engaged himself in any
activity that may undermine the
integrity of the Tribunal;
(e) fails to attend at least three
consecutive sessions of the
Tribunal without good cause;
(f) has acquired financial or other
interest as is likely to affect
prejudicially his functions; or
25

___________________________________________________________
(g) is abusing his position as to render

his
continuance
in
office
prejudicial to the public interest.
(2) Before removing a member from
office, the President shall inform the member
in writing stating the grounds for removal.
Cessation from
office
83D. The Chairman of the Tribunal

shall cease to hold office of the Chairman of
the Tribunal if he is dispossessed of
qualifications provided for under section
83(2)(a) of this Act..
Amendment of
section 84
47. The principal Act is amended in section 84, by inserting

immediately after subsection (2) the following new subsection(3) A person who is aggrieved by the decision or order
made by the Tribunal may appeal to the Court of Appeal on a
point of law..
Amendment of
section 85
48. The principal Act is amended in section 85, by(a) deleting the words Tanzania Communication Regulatory
Authority and Tanzania Civil Aviation Authority appearing
in paragraph (c) of subsection (1) and substituting for them the
acronyms TCRA and TCAA respectively; and
(b) inserting the words or Deputy Chairman after the words
Chairman appearing in subsection (6).
Amendment of
section 86
49. The principal Act is amended in section 86, by(a) designating section 86 as section 86(1); and
(b) inserting immediately after the designated subsection (1) the
following new subsection(2) The Registrar shall, before assuming office,
take and subscribe an official oath as set out in the Third
Schedule to the Act.
(3) The oath referred to under subsection (2) shall
be administered by the Chief Justice.
26

___________________________________________________________
(4) The Registrar shall perform all administrative

functions of the Tribunal as provided for under this Act.
(5) Before the Registrar convenes any meeting of
the Tribunal, he shall first consult with the Chairman.
(6) The meeting of the Tribunal shall be
convened quarterly.
(7) The Registrar may delegate any of his powers
than powers of determining the rights and duties to a
senior legal officer of the Tribunal..
Addition of
sections 86A
and 86B
50. The principal Act is amended by inserting the following

sections immediately after section 86:
Immunity
86A. The Chairman, Deputy Chairman,
member or employee of the Tribunal shall not
be personally liable for any act or thing done in
good faith in the performance or exercise, or
purported performance or exercise, of any
function or power of the Tribunal conferred
upon him.
Conflict and
Disclosure of
interest
86B-(1) A member of the Tribunal shall

not represent any person before a panel of the
Tribunal.
(2) Where, before or during a hearing, it
appears to a member of the Tribunal that he has
pecuniary or other interest in respect of the
matter of consideration or determination before
the Tribunal, that member shall(a) immediately disclose the fact and
nature of that interest to the
Chairman; and
(b) withdraw
from
any
further
involvement in that hearing.
(3) A member of the Tribunal who
contravenes subsections (1) and (2) shall be
disqualified from being a member of the
27

___________________________________________________________
Tribunal..
Amendment of
section 87
51. The principal Act is amended in section 87, by adding

immediately after subsection (3) the following new subsection:
(4) The Registrar shall prepare once in every year an
annual report which shall be forwarded to the Minister..
Addition of
section 91A

section 91 the following new section:
Seal of the
91A.-(1) The Tribunal shall have a seal
Tribunal
which shall be kept under the custody of the
Registrar.
(2) The affixation of the seal of the
Tribunal on any document shall be authenticated
by the signature of either the Chairman or
Registrar..
Amendment of
section 96

words Tanzania Communication Regulatory Authority and Tanzania
Civil Aviation Authority appearing in subsection (3) and substituting for
them the acronyms TCRA and TCAA respectively.
Amendment of
the Second
Schedule
54. The principal Act is amended in the Second Schedule by(a) deleting the word Board appearing in paragraph 1(c) and (e)
and substituting for it the words Minister;
(b) deleting figure 11 appearing in paragraph 1(c) and
substituting for it the figure 66; and
(c) deleting the word Board appearing in paragraph 3 and
substituting for it the phrase Members of the Commission..
Addition of
Third
Schedule
55. The principal Act is amended by adding immediately after the

Second Schedule a new Third Schedule as follows:
_________
THIRD SCHEDULE
_________
(Made under section 62 (7),83(4) and 86(2))
________
28

___________________________________________________________
OFFICIAL OATH
________
I, .......................................... do swear/affirm that I will well and truly serve the
United Republic of Tanzania and the President of the United Republic in the Office of the
Commission/Tribunal /Registrar so help me God..
_________
OBJECTS AND REASONS
___________
The Bill to make amendments to the Fair Competition Act, Cap. 285 in
order to address some weaknesses which were encountered during its
implementation so as to enhance the main objective of the Act, which is geared to
promote and protect effective competition in commerce and protect consumers
from unfair market practices.
The Bill is divided into Two Parts. Part I of the Bill deals with Preliminary
Provisions which provides for the short title.
Part II of the Bill deals with General Amendments to the Act. The Part at
Clause 2 proposes to amend the short title to reflect that the Act is also a consumer
protection law.
Clause 3 and 4 provides for various terms used in the Act, while Clause 9
purposes to amend section 9 which further adds allocation of markets as one of
the collusive agreement offences (cartels) so as to manage the competitors who
divide markets among themselves to the detriment of consumers. The proposal at
Clause 10 introduces a new section 9A which proposes to the Commission to
introduce and execute a Leniency Programme which is a total exoneration from
the penalties to a cartel member which reports to the Commission its cartel
membership; this will assist the Commission in detecting cartels which are very
dangerous offences in competition; apart from affecting investment and innovation,
cartels severely harm consumers by raising prices and restricting supply. The Part
also proposes a severe punishment for such offences provided for at Clause 33.
29

___________________________________________________________
Clause 11 proposes to add a list of offences on abuse of dominance so as

to make the members of public understand what kind of offences Commission is
dealing with regarding abuse of dominance, such as imposing unfairly high or low
prices, limiting production, predatory prices, price squeezing, tying arrangements,
refusal to deal, to mention a few.
The proposed Clause 12 proposes to state clearly the offences with regard
to mergers namely failure to notify; implementing prohibited merger;
implementing a merger without approval and breach of merger conditions for
members of public to be aware. The Clause further proposes a fine in order to deter
mergers from breach of merger conditions.
The proposed Clause 16 deals with amendment of consumer protection
provisions whereby new fines have been proposed in order to enforce compliance
of the Act. The Part further requires a seller or a supplier to display prices on
goods, so as to protect consumer from being overcharged due to unfair market
prices. It also provides for prohibition of disclaimers in consumer transactions, in
order to ensure that sellers or a suppliers are held liable for the supply of defective
and unsuitable goods or services and breach of warranty (product liability).
Furthermore the Part at Clause 32 proposes to amend section 59 which
intends to establish an alternative dispute resolution mechanism for consumer
disputes with a view of accelerating consumer redress, review and registration of
standard form consumer contracts, this will enable the Commission to take
corrective measures on identified unfair contractual terms. Also the Amendment
proposes that, whenever the Act provides for court redress the amendment gives
alternative to the Commission in order to enhance enforcement of consumer rights
are under Clauses 21 to 27.
The proposed Clause 34 introduces a new section 60A providing for orders
of the Commission to be enforced by the High Court so as to ensure
implementation of the orders.
Further the proposed Clause 38 proposes that, for the purposes of
facilitating investigations, the police officer shall accompany employees of the
Commission, the search warrant can also be issued by the Chairman, Director
30

___________________________________________________________
General or any member of the Commission authorized by the Chairman in his

behalf; (so as to avoid delays); and the staff of the Commission can search and
seize any item relevant to the investigation for better performance. The Clause
further proposes a penalty for giving false or misleading information and for failure
to comply with summons; the provision furthermore, proposes for an offence and
penalty for obstruction during investigations in order to enable the Commission to
get the intended information on time.
Furthermore, Clause 45 proposes the amendments to section 83 of the Act
by staggering the terms of office for the Members of the Tribunal in order to ensure
that there is a quorum at any material time, continuity and institutional memory is
kept; It also provides that members of the Tribunal shall take oath of office before
assuming their duties. The Part also provide for staggering of term of office for the
members of the Tribunal. Whereas Clause 46 proposes to create a position of
Deputy Chairman of the Tribunal at section 83A in order to have continued
operations of the Tribunal whenever the office of the Chairman is vacant.
Clause 46 also proposes addition of new sections 83B which provides for
the Code of Conduct for members of the Tribunal and employees. The code of
Conduct will prescribe the standard of behaviour to be observed. 83C provides for
removal from office for the members of the Tribunal by the President and 83D
which provides for the scenario where the Chairman may cease to be the
Chairman; such as where he is dispossessed of the qualification, for election of the
Deputy Chairman of the Tribunal who must be a person who qualifies to be
appointed as a Judge of the High Court.
Clause 47 also proposes to amendment section 84 of the Act whereby a
party who is aggrieved by the decision of the Tribunal may appeal to the Court of
Appeal on points of law.
The proposed amendment to section 86 which is under Clause 49, provides
for oath of office of the Registrar before assuming his office duties. This
amendment also empowers the Registrar to perform administrative functions, also
it allows him to delegate his functions or duties. Clause 50 proposes in sections
86A and 86B for immunity to the Chairman, Deputy Chairman, members and
31

___________________________________________________________
employees of the Tribunal, also it provides for the conflict and disclosure of
interest by members of the Tribunal respectively.
The Bill further proposes amendment to section 87 at Clause 51 for the
purposes of requiring the Registrar to prepare annual report and submit the same to
the Minister.
It further proposes insertion of new section 91A under Clause 52, which
provides for the seal of the Tribunal and affixation of the same.
____________
MADHUMUNI NA SABABU
___________
Muswada huu unakusudia kufanya marekebisho ya Sheria ya Ushindani
Sura ya 285 kwa ajili ya kuondoa mapungufu kadhaa yaliyojitokeza katika
utekelezaji wake ili kuweza kufikia azma ya kuwa na ushindani halali katika
biashara na kumlinda mlaji.
Muswada huu umegawanyika katika Sehemu kuu Mbili.
Sehemu ya Kwanza inaainisha masharti ya utangulizi yanayohusu jina la
Sheria inayopendekezwa.
Sehemu ya Pili inaainisha marekebisho ya Sheria husika, katika vifungu
mbalimbali. Sehemu ya Pili katika kifungu cha 2 cha Muswada kinapendekeza
kufanya marekebisho kwenye Utangulizi; Kifungu hiki cha 2 kinapendekeza jina
la Sheria liwe Sheria ya Ushindani na Kumlinda Mlaji ili kuonesha kwamba
Sheria hii inatarajia kumlinda mlaji. Vifungu vya 3 na 4 vya Muswada
vinapendekeza kuongeza baadhi ya maneno yanayotumika ndani ya Sheria.
Kifungu cha 9 cha Muswada kinapendekeza kurekebisha kifungu cha 9
kuongeza kuwa kosa kwa kuwepo kwa makubaliano ya kugawana masoko kwa
washindani ili Tume iweze kuwatia hatiani washindani hawa ambao
wanasababisha bei za bidhaa na huduma kuwa juu na hivyo kumsababishia mlaji
ugumu wa maisha. Kifungu cha 10 cha Muswada kinapendekeza kuongeza kifungu
32

___________________________________________________________
kipya cha 9A kinachopendekeza kuwepo na programu ambayo itamfanya mshiriki

wa kosa la makubaliano kujisalimisha kwenye Tume kwa ahadi ya msamaha wa
adhabu; utaratibu huu utaisaidia Tume kupambana na makosa ya makubaliano
ambayo yanaathiri kwa kiasi kikubwa uwekezaji, ubunifu na kwa kusababisha
kupanda kwa bei za bidhaa na huduma kwa mlaji. Sehemu hii pia inapendekeza
kuwepo na adhabu kali kwa makosa ya aina hii.
Muswada katika kifungu cha 11 kinapendekeza kuwepo na orodha ya
makosa yanayofanywa na kampuni yenye ukiritimba wa soko ili wananchi waweze
kuelewa makosa ambayo ni kama kuuza bidhaa kwa bei za juu au za chini
zisizowiana na gharama za uzalishaji; kushusha bei ili kuzuia washindani kuingia
kwenye soko; kuweka tofauti ndogo kati ya bei za jumla na zile za rejareja ili
mshindani ashindwe kupata faida na hivyo kushindwa kumudu kuwepo sokoni;
kuamua kuchagua au kubagua watu wa kufanya nao biashara; kuamua kuzalisha
chini ya uwezo wake n.k.
Muswada katika kifungu cha 12 kinapendekeza mambo ya kuzingatia
wakati wa kufanya uchunguzi wa muungano wa makampuni na pia kuweka bayana
maamuzi yatakayochukuliwa na Tume baada ya kuhitimisha uchunguzi wa
muungano wa makampuni; maamuzi hayo ni kukubali, kukubali kwa masharti,
kukataza au kukubali kwa kigezo cha msamaha wa masharti. Pia Ibara hii
inapendekeza adhabu kwa kosa la kuvunja masharti ya kibali cha Tume ili kufanya
wafanyabiashara wengine wasitende kosa la aina hiyo.
Sehemu ya Pili inapendekeza kufanya marekebisho katka kifungu cha 16
ambacho kinakusudia kumlinda mlaji, kwa kuweka au kuongeza viwango vya
faini ili kuzuia ukiukwaji wa Sheria; kuweka
vifungu vipya vinavyomtaka
muuzaji kuweka nembo ya bei za bidhaa kwenye bidhaa anazoziuza, ili kuzuia
ukandamizaji uliozoeleka katika soko ukandamizaji wa muuzaji kupanga au
kutamka bei kwa kuangalia muonekano wa mlaji; kuzuia matumizi ya masharti
kandamizi katika mikataba ya mlaji, yanayojitokeza katika matumizi ya maneno
kama Mali ikishauzwa hairudishwi wala kubadilishwa n.k.
Vile vile Sehemu hii katika kifungu cha 32 kinapendekeza kupitia kifungu
cha 59 kuweka utaratibu wa kushughulikia migogoro baina ya mlaji na muuzaji
kwa njia ya usuluhishi ambayo ni ya haraka, rahisi na yenye gharama nafuu kwa
33

___________________________________________________________
pande zote mbili, ili kuharakisha upatikanaji wa fidia kwa mlaji, kifungu
kinapendekeza pia kuipa Tume mamlaka ya kushughulikia malalamiko ya mlaji
kwa kupitia vifungu vya 21 hadi 27. Pia, Sehemu hii inaipa Tume mamlaka ya
kufanya mapitio kwenye mikataba ya mlaji iliyoandaliwa na upande mmoja
(Standard form consumer contracts) kwa nia ya kubaini masharti kandamizi katika
mikataba hiyo.
Kifungu cha 34 cha Muswada kinapendekeza kupitia kifungu cha 60A
kwamba Mahakama Kuu isimamie utekelezaji wa maamuzi yatolewazo na Tume
ili kuhakikisha kuwa hukumu hizo zinatekelezwa ipasavyo.
Muswada katika kifungu cha 38 unapendekeza hati ya upelelezi itolewe na
Mwenyekiti, Mkurugenzi Mkuu, au Kamishna yoyote wa Tume ya ushindani; na
kwamba katika uchunguzi kitu chochote cha kusaidia uchunguzi kinaweza
kuchukuliwa. Ibara hii pia inapendekeza adhabu kwa mtu yeyote aliyethibitika
kuwa katoa taarifa za uongo au kutotii wito wa kufika Tume kusikiliza kesi; na pia
inapendekeza kuwepo na adhabu kwa mtu yeyote atakayezuia uchunguzi unaotaka
kufanywa au unaofanywa na Tume.
Vilevile, hii katika kifungu cha 45 kinachopendekeza kufanya marekebisho
kwenye kifungu cha 83 kinapendekezwa kwamba uteuzi wa Wajumbe uwe ni wa
kupishana ili wasimalize muda wao kwa wakati mmoja hivyo kuwa na akidi muda
wote, pia kulinda kumbukumbu ya maamuzi mbalimbali ya Tume; pia kinaweka
masharti kuwa, mjumbe lazima ale kiapo kabla ya kufanya shughuli yeyote ya
Baraza kama mjumbe.
Aidha, kifungu cha 83A kinapendekeza uteuzi wa Makamu Mwenyekiti
wa Baraza ambaye atatakiwa awe na sifa zinazomuwezesha kuteuliwa kuwa Jaji
wa Mahakama Kuu mapendekezo haya yanapitia kifungu cha 46 cha Muswada.
Pia kifungu cha 46 cha Muswada kinapendekeza kupitia kifungu cha 83B
kinapendekeza Kanuni za Maadili ambazo zitaweka viwango vya tabia
zitakazotakiwa kufutwa na wajumbe na wafanyakazi wa Baraza. Wakati kifungu
cha 83C inapendekeza mazingira ambayo Rais anaweza kumwondoa mjumbe au
kutengua uteuzi wa mjumbe na kifungu cha 83D kinapendekeza kuweka masharti
34

___________________________________________________________
yanayopelekea ukomo wa Mwenyekiti

Mahakama Kuu.
anapopoteza sifa za kuwa Jaji wa
Sehemu hii katika kifungu cha 47 cha Muswada pia inapendekeza

marekebisho kwenye kifungu cha 84 ambapo kitatoa nafasi ya kukata rufaa kwa
upande ambao haujaridhika na maamuzi ya Baraza kwenda kwenye Mahakama ya
Rufaa kwa sababu za kisheria tu.
Mapendekezo ya marekebisho ya kifungu cha 86 yanalenga kuhakikisha
kwamba, Msajili kabla ya kuanza kazi yake anakula kiapo. Mapendekezo haya pia
yanampa mamlaka Msajili kufanya shughuli zote za kiutawala na anaweza
akakasimu majukumu yake, mapendekezo haya yamo chini ya kifungu cha 48 cha
Muswada.
Inapendekezwa pia kuingizwa vifungu vipya vya 86A na 86B ambapo
kifungu cha 86A kinaweka kinga kwa Mwenyekiti, wajumbe na Wafanyakazi wa
Baraza kwa shughuli zote za Baraza watakazozifanya kwa nia njema wakati
wanatekeleza majukumu yao kwa kupitia kifungu cha 50 cha Muswada na kifungu
cha 86B kinazungumzia mgongano wa kimaslahi na nini kifanyike pale mgongano
wa kimaslahi unapotokea hususani katika mashauri ya kesi za rufaa yanayoletwa
kwenye Baraza.
Sehemu hii pia inapendekeza marekebisho katika kifungu cha 87 kupitia
kifungu cha 51 cha Muswada kwa kumtaka msajili kuandaa Taarifa ya Mwaka ya
Baraza inayohusiana na shughuli za Baraza na kuiwasilisha kwa Waziri.
Imependekezwa pia kuingizwa kifungu kipya cha 91A kupitia kifungu cha 52 cha
Muswada ambacho kinahusu lakiri ya Baraza na matumizi yake.
Dar es Salaam,
2 Februari, 2015
ABDALLAH O. KIGODA
Waziri wa Viwanda na Biashara
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ISSN 0856 - 035X

THE UNITED REPUBLIC OF TANZANIA

THE FAIR COMPETITION (AMENDMENT) ACT, 2015

Amendment of the long title

Fair Competition (Amendment) Act

Fair Competition (Amendment) Act

Fair Competition (Amendment) Act

This Bill to be submitted to the National Assembly is published for general

1. This Act may be cited as the Fair Competition (Amendment)

2. The principal Act is amended by deleting the phrase Fair

The principal Act is amended

Fair Competition (Amendment) Act

subsection (1) and substituting for it the following:

5. The principal Act is amended in section 5, by adding a new

Fair Competition (Amendment) Act

(7) Notwithstanding subsection (6), where two or more

6. The principal Act is amended in section 6(1), by deleting the

7. The principal Act is amended in section 7, by adding a new

8. The principal Act is amended in section 8, by deleting the

9. The principal Act is amended in section 9:

10. The principal Act is amended by adding immediately after

Fair Competition (Amendment) Act

person who engages in anti-competitive

Fair Competition (Amendment) Act

(d) a person holding a dominant position in a relevant

Fair Competition (Amendment) Act

by taking into account any factor that is relevant

Fair Competition (Amendment) Act

(c) by contributing to greater efficiency in

Fair Competition (Amendment) Act

13. The principal Act is amended in Part II by re-arranging section

15. The principal Act is amended in section 25, by deleting the

16. The principal Act is amended by adding immediately after

Fair Competition (Amendment) Act

30B and 30C

30A (1) A supplier shall not display any

30B A supplier shall not display or

30C. A supplier who fails to comply

17. The principal Act is amended in the closing statement of

Fair Competition (Amendment) Act

Fair Competition (Amendment) Act

million shillings or 0.5 percent of that persons annual

19. The principal Act is amended by adding the following new

20. The principal Act is amended in the closing statement of

21. The principal Act is amended in the closing statement of

22. The principal Act is amended in the closing statement of

23. The principal Act is amended in the closing statement of

24. The principal Act is amended in the closing statement of

Fair Competition (Amendment) Act

Competent jurisdiction for the words, Commission or court.

25. The principal Act is amended in the closing statement of

26. The principal Act is amended in the closing statement of

27. The principal Act is amended in section 47(3), by substituting

Fair Competition (Amendment) Act

(b) deleting the phrase one hundred thousand shillings and

32. The principal Act is amended in section 59:

Fair Competition (Amendment) Act

(4) For purposes of subsection (3), where a

Fair Competition (Amendment) Act

fine of not less than twenty five million

Fair Competition (Amendment) Act

his annual turnover in the preceding

Fair Competition (Amendment) Act

34. The principal Act is amended by adding the following new