Kenya’s competition authority proposes tougher rules on Big Tech

The Competition Authority of Kenya (CAK) has proposed significant changes to the Competition Act aimed at curbing anti-competitive behavior by major technology companies. The move is a decisive step by the Kenyan government to protect local businesses from the overwhelming dominance of global tech giants such as Google, Amazon, X and Apple.

The proposed changes target various anti-competitive practices, including mergers and acquisitions intended to eliminate competition, restrictions on third-party services on major platforms, and limiting consumer choices by bundling core products with complementary products. If implemented, these changes will empower CAK to better enforce fair market practices and protect consumer rights in Kenya’s growing digital and technology sectors.

“The Competition Act (hereinafter referred to as the ‘Fundamental Act’) is amended in section 2 by adding “digital activities”, which means the provision of a service via the Internet or the provision of digital content to business consumers or other consumers (whether paid or not, and regardless of whether such activity is multilateral), “- specifies amendment.

This legislative push brings Kenya into ongoing global efforts to regulate Big Tech, echoing similar antitrust investigations in the United States and Europe. By extending its regulatory reach to digital activities, CAK aims to level the playing field for local businesses and support a more competitive market environment.

Stakeholders were invited to submit their views on the draft regulations by June 11, 2024. CAK’s proactive stance reflects a growing recognition of the need for a regulatory framework that can keep pace with rapid technological progress and the complexity of digital markets.