CTC warns landlords over anti-competitive retail leasing

By ETimes

HARARE – THE Competition and Tariff Commission (CTC) has raised concern over potentially anti-competitive practices in the leasing of retail space, warning that landlords who unfairly deny access to premises risk prosecution under the law.

CTC said in a statement that refusal by property owners to lease commercial space without valid justification could distort markets and limit consumer choice.

“Refusal to deal refers to a situation where a dominant firm in the market refuses to supply its products or services to a particular customer or competitor, without any valid economic justification,” CTC stated.

The regulator noted that the country’s commercial property sector is shifting towards large-scale, mixed-use developments, making access to retail space increasingly critical for businesses seeking to compete.

According to CTC, some landlords either outright reject potential tenants—particularly new entrants or impose restrictive conditions such as exclusivity clauses and limits on what tenants can sell.

While property owners retain the right to choose tenants, that discretion “is not absolute, particularly where it is exercised in a manner that distorts competition,” the Commission said.

Under the Competition Act, refusal to deal is classified as an unfair business practice.

“Any person who enters into, engages in or otherwise gives effect to an unfair business practice shall be guilty of an offence,” the law states, outlining penalties that include fines or imprisonment.

The CTC indicated that such practices can lead to market foreclosure, where competitors are locked out of prime retail locations, as well as higher prices and reduced product choice for consumers due to weakened competition.

It stressed that barriers to accessing key retail spaces could also deter new businesses from entering the market, slowing investment and economic growth.

The CTC urged businesses to report suspected cases and document any restrictive conditions imposed during lease negotiations, while calling on landlords to adopt transparent and non-discriminatory tenant selection criteria.

“While refusal to lease is not automatically unlawful in Zimbabwe, it becomes problematic when it is used as a tool to exclude competitors, entrench dominance, or undermine consumer welfare,” CTC added.