Economic regulation refers to a set of restrictions or rules promulgated by government administrative agencies through rulemaking supported by a threat of sanction or a fine. The main scope for government’s regulation is to prevent markets’ failures, in other words, situations in which markets do not efficiently organize production or allocate goods and services to consumers (as in the presence of a monopoly/dominant firm).

The Communications Act, No. 34 of 2016 specifically gives the Authority the mandate to regulate and monitor the provision of communications services and ensure that, as far as it is practicable, reliable and affordable communications services are provided throughout Malawi and are sufficient to meet the demand for such services in accordance with the principles of transparency, certainty, market orientation, efficiency, and consumer satisfaction.

In order to effectively execute the economic and competition regulation, the Authority has the Economic Affairs Department (also the Economics and Competition Department). The Department is responsible for economic regulation and competition in the communication sector in four areas:  Promotion | assessment | supervision | remedies.