COMESA — a 2025 Retrospective (and Thoughts on the Path Forward)

By the Editor

COMESA’s long-delayed and much-anticipated publication of the new 2025 Competition and Consumer Protection has prompted much fanfare, and rightfully so.  It represents a potential turning point and coming-of-age for the now 12-year old regional antitrust regulator. 

We decided to swim against the current and, rather than focus exclusively on “COMESA 3.0,” take a look back at the past year, so as to better gauge the (now) CCCC’s future performance versus its immediate past.

Fortuitously, our editor was present at a gathering of the ‘Fourth Estate,’ convened in Nairobi by COMESA’s Dr. Willard Mwemba.  For the third consecutive time, the Commission had invited members of the press to present its successes, show off the tight relationships between its staff and that of other national authorities (of note, David Kemei, Director General CAK, chairman of the EACA and local host, was present for most of the event, as was of course the agency’s éminence grise, Dr. George Lipimile), and to remind the assembled journalists that, in the bigger picture, the agency’s AfCFTA competition protocol coordination remained ongoing — more on that another day…

Without further ado, here are the 2025 COMESA highlights, as selected by the Commission:

Mergers

The large francophone-anglophone broadcasting deal of Canal+ acquiring Multichoice presented “lots” of competitive concerns according to Dr. Mwemba.  Already dominant firms merging to form an even larger entity was a serious threat to broadcast competition. Multichoice’s past behavior of refusing sublicenses and threatening to leave certain markets showed its unparalleled dominant position in various COMESA submarkets.  The parties did compete head-on with head other in three jurisdictions, Rwanda, Madagascar, and Mauritius, and would have had a foreclosing position COMESA-wide in relation to super premium content, leading the (then still) CCC to seek prohibition of the merger, and at a minimum the survival of Multichoice (and its “Talent Factory”) as an independent entity and employer in the region.

The parties’ defense relied in part on arguments alleging subscriber losses, eventually resulting in a conditional approval by the CCC with several commitments of the parties.

Two failure-to-file violations stand out in the past year: The Bosch/Johnson Control deal drew a failure-to-file violation of the (much maligned and soon to be replaced under the new Regulations) “30-day rule”.  Interestingly, the fine was reduced from a significant $400,000 initial amount to an almost negligible $8000, as JCI (the target and a first-time offender entitled to a 30% fine reduction) was to blame for the “inadvertent” false company statistics Bosch used to calculate whether the filing threshold was met.  While challenged by the acquirer, Bosch received a symbolic $1 fine for its own negligence in failing to vet the target’s figures for purposes of determining notifiability.

In the Mauritian BRED/BFV banking transaction, the fine was significantly reduced by the acquirer’s cooperation, minority shareholding status in many subsidiaries, and first-time offender status, resulting in merely $28,005 initial F2F fines.

On a broader scale, looking to the newly established EAC competition regime and its merger notification requirements, Dr. Mwemba recognized the concern that dual notifications will occur in all likelihood for the foreseeable future.

Anticompetitive Practices

The Commission’s standout case this past year was doubtless the “beer matter”: three main areas of concern stood out in the Heineken case, in which the respondent was found to be dominant in various geographic markets.  The three issues were: single-branding (foreclosing competing products at the downstream distribution level), absolute territorial restrictions (prohibiting distributors from not only active but also passive selling into unauthorized regions), and resale price maintenance (imposing a firm price — or here, a fixed profit margin — on resellers of the products).  A long lasting case, from June 2021 until early September 2025, resulting in a settlement procedure, eliminating the three clauses of concern and imposing the maximum settlement amount of $900,000 on Heineken.  Of note: Beer makers are also subject to an ongoing CCC investigation into the cross-shareholdings of various manufacturers.

Similarly, the Commission accused Diageo of the same types of anticompetitive practices in several COMESA member states. As the respondent had stopped one of the offending types of conduct (RPM) prior to the investigation’s commencement, the final combined fine amount was reduced to $750,000.

A further territorial restriction investigation into Toyota’s distribution practices is ongoing and “at an advanced stage”, with the CEO expecting to close the matter by Q1/2026.  Finally, the CCC is evaluating the effects of, among other things, Coca-Cola’s unilateral single-branding rules against retailers stocking only its own products in branded refrigerators, which can result in effective foreclosure of competing brands, especially at small retail businesses with limited floor space allowing only a single fridge.

Consumer Protection 

The airline sector did not escape the CCC’s enforcement net, as British Airways/Qatar experienced in the recently concluded investigation into Nairobi-London route collaboration among the parties, which they claimed allowed them to increase the volume of flights to 28 per week and lower ticket prices. The CCC permitted the conduct for a limited time of 5 years, requiring the parties to provide proof of the alleged efficiencies within two years.

On the consumer protection front, the CCC was heavily focused on the air travel sector over the past reporting year. It will publish, on Monday coming, a report detailing the results of its year-long airline survey and study, undertaken in conjunction with the African Union’s airline regulator.

Its signature agriculture study program, the African Market Observatory, continues to be funded and operationally supported by the Commission, having provided a key report to the COMESA Council of Ministers.  This effort has also led to the ICN having awarded the running of its agriculture program to the Observatory.  Dr. Mwemba proudly highlighted that the CCC assisted in averting a potential hunger crisis, namely in an (unpublished, we presume) maize case involving a sovereign engaging in absolute territorial restrictions, threatening serious food insecurity in Eswatini; it was the CCC’s advocacy efforts, as opposed to a full-fledged investigation, that yielded the positive results.

Finally, the CCC also concluded its drafting of a unified Model Consumer Protection Law, to serve as a standardized & harmonized guideline for African countries.  This comes as part of an effort to eradicate the fragmentation of competition and consumer protection laws, seeking the eradication of harmful corporate conduct and non-tariff trade barriers.

Looking Ahead: What’s in Store for COMESA 3.0?

Diverging from the titular “retrospective,” it appears fitting to step forward into the present moment and look ahead, with the Commission’s recent successes under its former Regulations now firmly established. To do so, I will quote from an article Dr. Liat Davis and I recently published in the Concurrences journal, entitled “Refining Regional Rapprochement: COMESA’s Competition Enforcement Comes of Age“:

The Mwemba era (2021 – present) has both accelerated and consolidated these earlier reforms, contributing to increased confidence in the regime among international stakeholders. With the exception of a temporary pandemic-related decline, merger activity has continued to rise, surpassing 500 notifications to date and now including the Commission’s first enforcement against gun-jumping. Non-merger enforcement has also expanded, with 45 conduct investigations and at least two cartel cases initiated. In parallel, the Commission has entered into numerous Memoranda of Understanding and multilateral cooperation agreements with African and global counterparts, strengthening its external partnerships. At the regional level, the CCC has acted as a catalyst for the establishment and development of National Competition Authorities (NCAs), offering indirect financial support, training, and collaborative initiatives.

This iterative process of course correction and capacity-building is now culminating in the long-awaited revision of the primary legislation. The new CCPR, due to take effect at the end of 2025, will formalize the Commission’s expanded mandate.  In light of the extensive reforms embodied in the new CCPR, and consistent with the prior informal designation of the CCC’s post-2021 period as “COMESA 2.0,” the implementation of the CCPR will mark the beginning of a third phase in the regime’s evolution. Appropriately described as “COMESA 3.0,” this stage is expected to be characterized by the following key attributes:

  • Expanded unilateral-conduct enforcement, owing to increased staffing, sustained capacity-building, and growing experience in conduct and cartel cases;
  • A significant rise in cartel investigations, driven principally by the forthcoming leniency regime;
  • Higher merger volumes, resulting from the move to a suspensory filing regime and accompanied by a likely increase in conditional approvals (subject to wider global economic conditions); [note: the CCC’s statistical trajectory is already sloping upward, as it has reviewed approximately the same number of transactions in the past 4 years as it had in the first 8 years of its existence.]
  • Strengthened consumer-protection enforcement by the ‘CCCC’, reflecting the Commission’s broadened mandate and aligning with wider African competition-law trends, including South Africa’s increasing incorporation of public-interest factors in merger analysis and Nigeria’s FCCPC using data-protection grounds to impose record fines; and
  • The development and application of a carefully delineated “public interest” standard in competition cases, subject to strict guardrails to prevent politicization and adapted to the unique constraints of a multi-national enforcement regime.

COMESA antitrust workshop addresses AfCFTA

The COMESA Competition Commission (CCC), under the leadership of its CEO and Director Dr. Mwemba, organised its first “Emerging Trends in Competition and Consumer Law Enforcement in the Wake of Regional and Continental Integration” workshop in Zambia, targeting legal practitioners across and outside Africa. Its objective is to discuss various issues in competition and consumer protection law enforcement at national, regional and continental level including emerging issues such as the African Continental Free Trade Area (AfCFTA).

Michael Currie, a competition partner at Primerio, said of the event, “Great to be participating at the COMESA Competition Commission’s first Workshop dedicated specifically to legal practitioners, hosted here in Livingstone. It was informative, and simply good to be travelling, meeting old friends and colleagues and seeing world heritage sights all in a few days work. This is an important initiative by the CCC as it expands its advocacy and enforcement initiatives across the Common Market. Important topics on the agenda including updates on the CCC’s approach to penalties, settlement procedures and investigations as well as the more robust merger regime in place. Thank you Willard Mwemba for the invitation and congrats on a well-organised event!”

Podcast explores latest developments across Africa

The latest episode #122 of Sheppard Mullin’s popular NOTA BENE podcast features Primerio’s Andreas Stargard, exploring “Africa Q2 Check In: Economic Growth and Relevance.”

Africa continues to strive for economic growth through various trade partnerships and foreign investments, but long-standing challenges remain an impediment in certain respects. Is Twitter’s decision to open an African base in #Ghana any indication of the continent’s economic potential? We’re joined by #Africa competition and markets expert, Andreas Stargard, a co-founding senior member of Primerio Ltd., as he shares insights on Africa’s economic outlook in Q2 of 2021.

You can listen to it for free on all major ‘podcatchers,’ including here:

Common Markets & the Race for Power in Africa: a Podcast Interview

Africa is a continent of 1.2 billion people.  From a consumer potential standpoint it matches China or India.  Yet historically, it has suffered from the lingering shadows of its colonial past, in addition to its current fractures, hostility, and ever-present corruption.

The continent is emerging fast, however, and is quickly accelerating into the 21st Century marketplace both from an investment and growth opportunity. From the digital revolution and increased free trade, to innovation in various industries, Africa may be the next market frontier to unfold into accelerated multinational presence.

In this podcast episode (available gratis on Apple, Spotify, and Sheppard Mullin‘s web site), Michael P.A. Cohen is joined by Africa competition and markets expert, Andreas Stargard, as he shares his insight to help multinationals navigate the African landscape.

What we discuss in this Podcast episode:

  • What do the Africa markets look like from a multinational business opportunity perspective?
  • Which countries in Africa have established markets? Which ones have growth potential?
  • How and why has China’s investment and influence across Africa intensified over the last couple of decades?
  • What type of digital revolution is taking place in Africa?
  • Is there a huge opportunity for mobile money on the continent?
  • How is free trade shaping up across the African continent? How do the AfCFTA’s goals tie in?
  • What Free Trade cooperation agreements exist among the East, West and South African nations? Will they succeed?
  • Where is Africa leading innovations?
  • How will African wars and corruption impact its ability to grow a multinational marketplace?

Who’s speaking:

Michael Cohen is the creator of the Nota Bene podcast. He began his career as an Assistant Special Prosecutor, investigating and prosecuting organized crime involvement with the failure of local financial institutions in the early 1990s, and has since practiced globally at several top law firms. In 2015, Michael joined Sheppard Mullin’s storied antitrust practice with a goal of putting his 25 years experience to work to complement the firm’s longstanding antitrust litigation group, helping to bridge government antitrust enforcement in Washington, D.C. to the firm’s strengths in Brussels, San Francisco and Los Angeles.

A co-founding senior member of Primerio, a business advisory firm helping companies do business within Africa from a global perspective, Andreas Stargard is legal, strategic, and business advisor to companies and individuals across the globe.  He focuses on antitrust and competition advice, white-collar counseling, contract dispute and negotiation, and resolution of global business disputes, including cartel work, corruption allegations and internal investigations, intellectual property, and distribution matters.  He has written and spoken extensively on these topics and many others.  Andreas also advises clients on corporate compliance programmes that conform to local as well as global government standards, and has handled key strategic merger-notification questions, including evaluation of filing requirements, avoidance strategies, cross-jurisdictional cooperation, and the like.