Consumer advocates say the changes are overdue given the rapid expansion of mobile internet and digital services across COMESA member states
Kampala, Uganda | JULIUS BUSINGE | The Common Market for Eastern and Southern Africa has adopted its most far-reaching overhaul of competition and consumer protection rules in more than two decades, introducing tougher merger thresholds, stricter oversight of digital platforms and penalties of up to 10% of annual turnover for violations.
The revised Competition and Consumer Protection Regulations, approved by the bloc’s Council of Ministers in December 2025 and officially launched on Feb.23 in Livingstone, Zambia, mark a decisive shift in how cross-border business conduct will be regulated across eastern and southern Africa.
For companies operating in multiple COMESA member states, the changes mean earlier engagement with regulators, more detailed economic assessments and heightened compliance costs. For consumers, officials say the new framework promises stronger safeguards against unfair trade practices, misleading advertising and unsafe products.
COMESA, established in 1994 as a successor to the Preferential Trade Area of 1981, brings together 21 member states in a combined market of 682 million people with gross domestic product exceeding $1.1 trillion. In 2024, foreign direct investment inflows into the bloc reached $65 billion, according to COMESA data, highlighting its growing weight in Africa’s economic landscape.
Speaking at the launch, Secretary General Chileshe Mpundu Kapwepwe described the reforms as a turning point.
“This is a significant evolution in regional legal and institutional framework,” she said, adding that the regulations arrive at “a critical moment” as the bloc deepens integration and digital transformation.
Kapwepwe framed enforcement as central to economic strategy rather than merely legal housekeeping.
“Effective enforcement is not merely a legal exercise, it is an economic imperative,” she said, noting that a predictable regulatory environment is essential to attract investment, spur innovation and create employment across the region.
From triple C to quad C
As part of the reforms, the former COMESA Competition Commission has been renamed the COMESA Competition and Consumer Commission, reflecting a broadened mandate that places consumer protection on equal footing with competition enforcement.
Chief Executive Officer Willard Mwemba said the name change signals a deliberate policy shift. “What is evidently clear in all this is the emphasis on ‘consumer’,” he told delegates, noting that the revised framework was developed internally following consultations with businesses, lawyers and consumer groups.
Mwemba acknowledged that the previous law, enacted in 2004, had not been amended for more than two decades despite profound changes in market structures.
“You can imagine amending a law that had not seen the slightest amendment since 2004,” he said, adding that markets had since become more digital and complex. “As markets are dynamic, it is also important that the laws are not static.”
The revised regulations are designed to close gaps exposed by the rise of e-commerce platforms, cross-border digital services and increasingly integrated regional supply chains.
One-stop shop with stronger teeth
At the heart of the reforms is a reinforced “one-stop shop” model for cross-border competition matters. The rules apply to conduct that has an effect in two or more COMESA member states and, in such cases, take precedence over national competition laws.
For businesses, this centralises oversight at regional level and reduces the risk of conflicting national decisions, but it also concentrates enforcement power in the regional regulator.
Merger control provisions have been significantly tightened. Transactions must be notified to the Commission where the combined annual turnover or asset value in the Common Market equals or exceeds 60 million COMESA dollars, and at least two of the parties each have turnover or assets of 10 million COMESA dollars within the bloc.
In addition, certain digital transactions may be notifiable based on transaction value alone, even if traditional turnover thresholds are not met – a provision aimed at capturing acquisitions of fast-growing tech firms whose market significance may not yet be reflected in revenue figures.
Failure to notify a qualifying merger, or implementing it before receiving approval, constitutes a direct violation of the regulations.
The Commission has up to 120 days to review notified mergers. An expedited review track is available for straightforward transactions at a fee of $120,000.
Member states retain the ability to request referral of a case to national authorities where local competition concerns are disproportionately affected. While intended as a safeguard, the provision introduces additional strategic considerations for dealmakers navigating multi- jurisdictional transactions.
For multinational corporations and regional conglomerates, lawyers say the message is clear: merger planning must incorporate COMESA-level engagement from the outset.
Cartels, vertical restraints
The regulations introduce explicit per se prohibitions on hardcore cartels, including price fixing, bid-rigging, market allocation and quota arrangements. Certain vertical restraints, such as absolute territorial protection and minimum resale price maintenance, are also outlawed.
One of the most notable additions is the concept of abuse of economic dependence. Under this provision, a company need not be dominant in a market to breach the rules. If a smaller firm is economically dependent on a larger trading partner and lacks viable alternatives, exploitative conduct could attract sanctions.
The move expands the scope of enforcement beyond traditional dominance cases and is likely to affect distribution networks and supplier relationships across sectors including fast-moving consumer goods, agriculture and manufacturing.
Penalties are substantial. Fines can reach up to 10% of a company’s annual turnover, with no fixed maximum cap. The Commission is also empowered to issue interim orders during investigations and to conduct market-wide inquiries that could lead to structural or behavioural remedies.
Public interest considerations – including employment, the participation of small and medium- sized enterprises, and environmental sustainability – are now explicitly factored into competition assessments.
For investors, the inclusion of public interest criteria introduces an additional layer of analysis beyond pure competition metrics.
Reflecting global regulatory trends, the regulations contain specific provisions targeting large digital platforms designated as “gatekeepers.”
Such platforms are barred from self-preferencing their own products or services, imposing anti- steering provisions that prevent business users from directing customers elsewhere, restricting data portability or combining personal data across services without adequate safeguards.
The approach mirrors elements of digital market regulation seen in Europe and signals that African regional regulators are increasingly willing to police platform power.
Consumer advocates say the changes are overdue given the rapid expansion of mobile internet and digital services across COMESA member states.
Sam Watasa, executive director of the Uganda Consumer Protection Association, said closer scrutiny of data practices is essential.
“Everybody should be concerned about how data is collected, shared and ultimately disposed of,” he said, calling for harmonised data protection standards under the regional framework.
“For consumers to make informed decisions and for businesses to operate fairly, we must drive a coordinated regional process,” he added.
Stronger consumer rights
The consumer protection pillar of the regulations formally recognises international consumer rights and prohibits unfair trade practices, misleading representations, scams and so-called dark patterns on a per se basis.
Mwemba described dark patterns – online design techniques that manipulate users into choices they might not otherwise make – as “the supreme evil of consumer violations,” adding that making such practices an outright offence reflects the Commission’s determination to tackle digital misconduct.
Contracts containing unfair terms will not be binding under the new framework. Businesses are required to ensure transparency and balance in consumer agreements, particularly in digital environments.
Product labelling requirements have also been expanded. Goods must disclose manufacturer details, country of origin, ingredients, allergen information, nutritional content, expiry dates and usage instructions in clear and comprehensible language appropriate to the target market.
The Commission is empowered to order compulsory recalls of unsafe or non-compliant goods. Remedies may include repair, replacement, refunds or mandated performance of services to the expected standard.
For companies operating regionally, compliance will require tighter quality control, enhanced documentation and more rigorous supply chain oversight.
Compliance as strategy
Competition experts say the reforms should be viewed as a strategic inflection point rather than a bureaucratic hurdle.
Lilian Mukoronia, a former registrar of the East Africa Competition Authority and a competition specialist, warned of reputational risks for firms that fail to adapt.
“Do not look at these rules as a burden,” she said. “Failure to comply with the new rules will damage your company and your business partners.”
She encouraged companies to engage regulators early in the transaction process. “Have notification meetings with the regulators,” she advised, noting that authorities are open to providing advisory guidance before mergers or major transactions.
The regulations also streamline adjudication by providing for direct reference of matters to the COMESA Court of Justice, strengthening the bloc’s rule-of-law architecture and offering a clearer appellate pathway.
Legal experts Sydney Chisenga and Vani Chetty have said that courts will rely on the strengthened investigative, merger control and consumer protection provisions to deliver consistent rulings and deter anti-competitive conduct. They have called for “aggressive sensitization” to ensure businesses and consumers understand the new regime.
Officiating at the launch, Zambia’s Permanent Secretary for Commerce, Trade and Industry Lillian S Bwalya described the moment as historic.
“These two documents shall have undoubted impact on businesses and consumers in the Common Market and beyond,” she said, urging member states to domesticate the framework to enhance compliance and reduce the cost of doing business.
