The Competition Authority of Kenya (CAK) plans to make drastic changes to the Competition Act to address the abuse of power by dominant technology firms. This is a strategic measure that the Kenyan government has taken to promote the Kenya’s local industries from being overrun by international technology firms like Google, Amazon, X, and Apple. The proposed changes cover several areas of anti-competitive conduct that includes mergers and acquisitions aimed at eliminating rivals, restrictions on third-party access to core platforms and bundling of main goods and services with complementary ones. If implemented, these changes will enable the CAK to address unfair matters practised in the Kenyan market with high strengths and protect consumer interests within the growing digital and ICT realms.
“The Competition Act (hereinafter referred to as the ‘principal Act’) is amended in section 2 by inserting ‘digital activities,’ which means the provision of a service through the internet, or provision of digital content, for of business consumers or other consumers (whether paid for or otherwise and whether such activity is multisided),” the amendment specifies.
This legislative endeavour places Kenya in the ongoing trends aiming at restraining Big Tech, grounding similar antitrust probes in the United States and Europe. Thus, by targeting the digital activities of companies, CAK is to help domestic businesses avoid unfair competition and create a more competitive field.
Members of the public have been encouraged to make their contributions to the proposed legislation by 11th June 2024. The CAK is therefore not passive but is actively exploring how it can adapt to meet the increasing demand for new regulations in an era of technological development and growing digital markets.
