Parliament passes Bill regulating business competition

President Yoweri Museveni declined to sign the bill on the basis that Clause 4 establishes the Competition and Consumer Protection Commission, which attracts a charge on the Consolidated Fund.

Article 93(a) of the constitution prohibits Parliament from proceeding on a bill or an amendment unless it is done on behalf of the government, which imposes a charge on any public funds.

The Competition Bill, 2023, is intended to facilitate fair competition in markets and prevent practices having adverse impacts on competition in markets. It primarily seeks to control anti-competitive behaviour of firms that has a negative impact on competition in Uganda’s market.

The President argued that the clause is contrary to government policy on rationalisation, which has since halted the creation of new government agencies. The President instead proposed that the bill be administered by the Ministry of Tourism, Trade, and Industry.

Parliament was in agreement with the President’s view on the Bill’s effect on the Consolidated Fund but disagreed on the issue of rationalisation.

"The framers of the constitution were of the opinion that whether you are in position to get monies to fund any processes, as long as there is an implication on the Consolidated Fund, the hands are tied. So, we are constitutionally barred from proceeding with the establishment of the commission on account of Article 93 (a) of the Constitution," said Asuman Basalirwa, Member of Parliament (MP) for Bugiri Municipality.

He said that the argument of the Committee on Trade, Tourism, and Industry that the commission will be self-financing through fines and charging fees is not premised in the constitution.

The trade committee’s deputy chairperson, Catherine Lamwaka, while presenting the report on the floor of Parliament

The committee in its report posits that "the commission will be self-financing, through charger fees, merger fees, fines, and penalties. The commission will increase revenues for the government".

On rationalisation, Parliament noted that although the government has frozen the creation of new agencies, the policy still provides for agencies with distinguishable and prominent mandates, such as the Uganda Revenue Authority, to remain.

"Over 80 agencies will remain according to the policy. This is a clear indication that there are exceptions in the rationalisation policy; it is the committee’s convinced opinion that the Competition and Consumer Protection Commission qualifies to constitute the 80 agencies that will not be affected by the rationalisation policy," said Lamwaka.

The Speaker of Parliament, Anita Among, supported the committee’s recommendation, which she said is in line with Parliament’s position on rationalisation.

Among those charged was the State Minister for Industry, David Bahati, to bring an amendment to Article 93, which would then provide for the creation of the commission to be self-financing.

Bahati’s attempts to reiterate the President’s recommendation that the competition commission be replaced with just a committee in the trade ministry were met with opposition. He pledged to consider introducing an amendment as requested.

"Once this bill has been passed and has been assented to, I will make consultations, and after that, we can consider bringing the amendment," said Bahati.