Anti-Competition Hamper Economic Growth

Acting Minister of Investment Trade and Industry, Biggie Butale told the national competition conference last week that this takes place despite government’s efforts to create massive opportunities for growth. He added that since the establishment of the Competition Authority in 2011 bid rigging cases accounts for almost 40% of the restrictive business cases that the Authority has handled.

He added that empirical evidence has shown that bid rigging can increase the cost of goods and services by 20% and that the cost of such conduct is around 35% to 55% for developing countries. “I am fully aware that in some instances, markets are not fully functional and efficient because of the legislative environment that restricts competition. We are therefore as government supporting Competition Authority in undertaking a comprehensive study of the laws that harm and restrict competition,” he said.