In 2024, the Parliament of Uganda enacted the Competition Act Cap 66, filling a significant gap in the country’s legal framework at the time. However, without the necessary operationalising regulations, the Act’s powerful provisions, remained dormant. This has since changed as the Regulations, now cited as the Competition Regulations S.I. No. 60 of 2025 were published in the National Gazette and made publicly available recently on 20th September 2025, reviving the operation of the Competition Act.

This article provides an overview of these regulations and concludes with a brief on the expected impact on Uganda’s business environment and economy.

Administrative Structure

The Regulations solidify the administrative structure for enforcing competition law. The Ministry of Trade, Industry and Cooperatives (the Ministry) is confirmed as the primary enforcement body. A key feature is the establishment of a Technical Committee to assist the Ministry.

The Committee will be composed of a chairperson and six members appointed by the Minister, selected for their expertise from government, the private sector, and academia. Members will serve a three-year term and are eligible for reappointment. The Committee’s functions are extensive, including assisting the Ministry to promote and sustain fair competition, protect consumer interests, investigate anti-competitive practices, approve mergers, and even serve as a mediating body in disputes between the Ministry and businesses.

Prohibition of Anti-Competitive Practices and Agreements

The Regulations establish a clear process of tackling cartels and other collusive agreements. The Ministry can initiate an investigation on its own accord or based on a complaint submitted in writing by an aggrieved person. Notably, complaints can be submitted anonymously.

Upon receiving a complaint, the Ministry will conduct a preliminary inquiry and has 30 days to determine, in writing, whether there are reasonable grounds to suspect a violation of the Act (Sect. 9) warranting a full-scale investigation. If the initial information is insufficient, the Ministry is empowered to request further details in writing or summon a complainant for an interview.

Prohibition of Abuse of Dominance

The Regulations provide a modern detailed framework for identifying and curbing the abuse of power. They elaborate on the factors listed in the Act for determining inf a company holds a dominant position, such as whether it controls 30% or more of a particular market (or 60% for three or more firms), its economic power, technical advantages, and the existence of barriers to entry for competitors.

Crucially, the Regulations go beyond the Act to define specific abusive conducts with greater precision. These include:

 
The Regulations guide how the Ministry will assess each of these practices, incorporating concepts like collective dominance (where multiple firms act as one) and the unique dynamics of digital markets.

Mergers, Acquisitions and Joint Ventures

This is one of the most detailed parts of the Regulations, establishing a mandatory merger control regime. Parties to transactions must notify the Ministry if they meet specific financial thresholds. Key thresholds include:

The notification process involves submitting a detailed form, followed by a publication requirement in a widely circulated newspaper. The Regulations also usefully clarify transactions that are exempt from notification, such as internal group restructurings, acquisitions of minor shareholding (below 20% without control), and joint ventures that are not fully operational.

A critical provision addresses “gun-jumping,” that is, implementing a merger before approval. The Ministry will look at factors like the premature integration of teams, systems, or the exchange of competitively sensitive information beyond what is necessary for due diligence. For problematic mergers, the Ministry can impose structural remedies (like divestitures) or behavioural remedies to protect competition and public interest.

Complaints, Investigations and Enforcement

The Regulations grant the Ministry broad investigation powers. It can launch investigations based on complaints or on its own initiative. If an investigation confirms a violation, the consequences are severe. The Ministry can impose significant fines or refer the matter to the Director of Public Prosecutions.

As a clear deterrent, contravening the Regulations is an offence which is punishable upon conviction by a fine of up to UGX 20 million, imprisonment for up to 10 years, or both.

Conclusion

The publication of the Competition Regulations marks a transformative step for Uganda’s economy. It moves the legal framework from principle, providing businesses with much-needed clarity and establishing a robust mechanism to foster fair competition.

The true challenge now shifts from legislation to implementation. The Ministry’s capacity for effective enforcement will be the ultimate test of this regime’s success. For businesses operating in Uganda, the era of “wait-and-see” is over. The detailed Regulations are now in effect. The imperative is to be proactive: conduct internal audits to assess compliance risks, integrate competition law assessments into merger and acquisition planning, and train staff on the dos and don’ts of the new law. Companies that embrace this new reality and embed compliance into their operations will not only avoid significant penalties but will also thrive in a healthier, more competitive market. Uganda’s commitment to a fair market is now unequivocal; the onus is on the business community to respond with equal seriousness.