COMESA Competition Commission Halts Multi-Billion-Dollar Mergers to Safeguard Market Competitiveness
The Common Market for Southern and Eastern Africa (COMESA) Competition Commission has taken decisive actions to protect market competitiveness, terminating several multi-billion-dollar mergers and imposing fines on multinational companies found to be engaging in anti-competitive practices.
Since its establishment in 2013, the Commission has played a crucial role in ensuring fair competition within the region.
Speaking at the 2024 COMESA Competition Commission annual press conference held in Livingstone, Director and Chief Executive Officer Dr. Willard Mwemba highlighted the Commission’s achievements in regulating mergers and other business activities that threaten competition.
Dr. Mwemba disclosed that the Commission had imposed fines in cases that extended beyond mergers, collaborating with member states and stakeholders at both continental and intercontinental levels.
One of the notable actions taken by the Commission was the fining of the Confederation of African Football (CAF) and beIN Media Group LLC in December 2023. The two entities were fined a total of $600,000 for breaching the COMESA Competition Regulations, marking a significant enforcement action by the Commission.
Dr. Mwemba also revealed that the Commission had prohibited the proposed acquisition of the Decorative Coatings Business of Kansai Plascon East Africa Proprietary Limited and Kansai Plascon Africa Limited by Akzo Nobel NV.
This decision marked the first time the Commission had blocked a merger in three COMESA member states: Eswatini, Zambia, and Zimbabwe. The merger was rejected on the grounds that the two companies were close competitors, and their merger would have significantly reduced competition in the market, leading to potential negative consequences for consumers, including higher prices and reduced choice.
“This was the first transaction that the COMESA Competition Commission prohibited since the commencement of its operations in 2013. Allowing the merger would have virtually collapsed competition between Akzo Nobel NV and Kansai Plascon, leaving consumers vulnerable to abusive practices by the merged entity,” said Dr. Mwemba.
Additionally, Dr. Mwemba disclosed that the Commission launched an investigation in June 2021 into the main beer manufacturers operating in the COMESA region, including AB InBev, Castel, Diageo, and Heineken.
The investigation was prompted by suspicions that these companies were engaged in market allocation agreements and territorial restrictions in their distribution agreements with independent distributors—a practice considered anti-competitive.
“Market allocation and territorial restrictions reinforce national borders and derail regional integration efforts. Such practices restrict competition and ultimately affect trade between member states in the Common Market,” Dr. Mwemba explained.
