This archive report was first published on 8 December 2019.
East Africa Community Competition Act: A Step Towards Fair Business Practices ¶
December 8, 2019
The East Africa Community (EAC) has introduced the East Africa Community Competition Act to regulate competition and consumer welfare in the region. The law aims to promote fair business practices and equal treatment of businesses across EAC partner states.
The EAC is a regional bloc comprising six partner states, including Kenya, Uganda, Tanzania, Rwanda, Burundi, and South Sudan. The Democratic Republic of Congo has expressed interest in joining the EAC.
Under the new law, partner states are obligated to abolish discrimination and favoritism, treating businesses equally regardless of their country of origin. However, the practice is far from the provision in the law, with local businesses often receiving preferential treatment.
One of the challenges facing the EAC is the lack of a distinct mark of origin that would facilitate liberalization. In contrast, the European Union has a system in place for designating EU trademarks to goods originating within the EU.
Liberalization is encouraged in the new law, with partner states urged to open up their domestic markets to competition from other EAC states. This is already happening in the aviation sector, where the open sky policy has led to increased competition among airlines.
The EAC Competition Authority, an ad hoc body created under the law, is responsible for enforcing the provisions of the law. However, the authority's institutional mandate is weak, and the enforcement of decisions is unclear.
