KAMPALA, Uganda – 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, including stricter merger limits, tighter monitoring of digital platforms and fines 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 in Livingstone, Zambia on February 23, mark a decisive shift in how cross-border business conduct will be regulated in Eastern and Southern Africa.
For companies operating in many COMESA member countries, the changes mean earlier engagement with regulators, more detailed economic assessments and increased 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 1981 Preferential Trade Area, brings together 21 member countries in a combined market of 682 million people, with a gross domestic product of more than $1.1 trillion. According to COMESA data, foreign direct investment flows into the bloc are set to reach $65 billion in 2024, highlighting its growing weight in Africa's economic landscape.
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Speaking at the launch, Secretary-General Chileshe Mpundu Kapwepwe described the reforms as a turning point.
“This is an important development in the regional legal and institutional framework,” he said, adding that the rules arrive at “a critical moment” as the bloc deepens integration and digital transformation.
Kapwepwe framed enforcement as central to economic strategy rather than mere legal housekeeping.
“Effective enforcement is not just a legal exercise, it is an economic imperative,” he said, noting that a predictable regulatory environment is essential to attract investment, foster innovation and create jobs 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 broader mandate that places consumer protection on an equal footing to competition enforcement.
Chief Executive Officer Willard Mwemba said the name change signaled a deliberate policy shift. “What is clear in all this is the emphasis on the 'consumer',” he told delegates. He said the revised framework was developed internally after consultation with businesses, lawyers and consumer groups.
Mvemba acknowledged that the previous law, enacted in 2004, had not been amended for more than two decades, despite widespread changes in market structures.
“You can imagine amending a law that hasn't had the slightest amendment since 2004,” he said, noting that markets have become more digital and complex since then. “Since markets are dynamic, it is also important that laws are not static.”
The revised rules are designed to close the gaps exposed by the rise of e-commerce platforms, cross-border digital services and increasingly integrated regional supply chains.
One-stop shop with strong teeth
At the heart of the reforms is a strengthened “one-stop shop” model for cross-border competition matters. The rules apply to conduct that has an impact on two or more COMESA member countries and, in such cases, take precedence over national competition laws.
For businesses, this centralizes oversight at the 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 reported to the Commission where the combined annual turnover or asset value in the common market is equal to or greater than 60 million COMESA dollars, and at least two parties have turnover or assets worth 10 million COMESA dollars within the block.
Additionally, some digital transactions may be notified based on transaction value alone, even if traditional turnover thresholds are not met – a provision intended to capture acquisitions by fast-growing tech firms whose market importance may not yet be reflected in revenue figures.
Failure to notify an eligible merger, or to implement it before obtaining approval, is a direct violation of the rules.
The Commission has up to 120 days to review a notified merger. An accelerated review track is available for direct transactions for a fee of $120,000.
Member States have the ability to request referral of a case to national authorities where local competition concerns are disproportionately affected. Although this provision is intended as a security measure, this provision introduces additional strategic considerations for dealmakers navigating multi-jurisdictional transactions.
For multinational corporations and regional groups, lawyers say the message is clear: Merger planning must include COMESA-level engagement from the beginning.
cartels, vertical sanctions
The rules impose clear restrictions on hardcore cartels, including price fixing, bid-rigging, market allocation and quota systems. Some vertical restrictions, such as absolute territorial protection and minimum resale price maintenance, are also illegal.
One of the most notable additions is the concept of abuse of economic dependency. Under this provision, a company does not need to be dominant in the market to violate the rules. If a small firm is economically dependent on a larger trading partner and lacks viable alternatives, exploitative conduct may be prohibited.
The move expands the scope of enforcement beyond traditional dominance cases and is likely to impact distribution networks and supplier relationships in sectors including fast-moving consumer goods, agriculture and manufacturing.
The punishments are enough. Fines can reach up to 10% of a company's annual turnover, with no cap. The Commission also has the power to issue interim orders during investigations and conduct market-wide inquiries that may lead to structural or behavioral measures.
Public interest considerations – including employment, participation of small and medium-sized enterprises and environmental sustainability – are now explicitly included in competitiveness assessments.
For investors, the inclusion of public interest criteria offers an additional layer of analysis beyond pure competition metrics.
Reflecting global regulatory trends, the rules include specific provisions targeting large digital platforms designated as “gatekeepers”.
Such platforms are prevented from self-preference their own products or services, implement anti-steering provisions that prevent business users from directing customers elsewhere, restrict data portability or prevent the combining of personal data across services without adequate safeguards.
This approach mirrors elements of digital market regulation seen in Europe and signals that African regional regulators are increasingly keen to police platform power.
Consumer advocates say the changes are necessary given the rapid expansion of mobile internet and digital services in COMESA member countries.
Sam Watasa, executive director of the Uganda Consumer Protection Association, said closer scrutiny of data practices is necessary.
“Everyone should be concerned about how data is collected, shared and ultimately disposed of,” she said, calling for harmonized data protection standards under regional frameworks.
“To enable consumers to make informed decisions and for businesses to operate fairly, we must drive a coordinated regional process,” he said.
strong consumer rights
The consumer protection pillar of the rules formally recognizes international consumer rights and prohibits unfair trade practices, misleading representations, scams and so-called dark patterns.
Mvemba described dark patterns – online design techniques that manipulate users into making choices they might not otherwise choose – as “the supreme evil of consumer violations”, adding that making such practices a full-fledged crime shows the Commission's determination to tackle digital misconduct.
Contracts with unfair terms will not be binding under the new framework. Businesses need to ensure transparency and balance in consumer agreements, especially in the digital environment.
Product labeling 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 understandable language suitable for the target market.
The Commission has the authority to order a mandatory recall of unsafe or non-compliant goods. Remedies may include repair, replacement, refund or compulsory performance of services to the expected standard.
For companies operating regionally, compliance will require tighter quality controls, enhanced documentation and more rigorous supply chain oversight.
Compliance as a strategy
Competition experts say the reforms should be seen as a strategic inflection point rather than a bureaucratic hurdle.
Lillian Mukoronia, former registrar of the East Africa Competition Authority and competition expert, warned of reputational risks for companies that fail to adapt.
“Don't view these rules as a burden,” he said. “Failure to comply with the new rules will harm your company and your business partners.”
He encouraged companies to involve regulators early in the transaction process. “Have notification meetings with regulators,” he advised, noting that authorities are open to providing advisory guidance ahead of mergers or major transactions.
The Rules streamline adjudication by providing direct referral of cases to the COMESA Court, strengthening the block's rule-of-law architecture and offering a clear appellate route.
Legal experts Sydney Chisenga and Vani Chetty have said that courts will rely on stronger scrutiny, merger control and consumer protection provisions to deliver consistent judgments and prevent anti-competitive conduct. He has called for “aggressive sensitivity” to ensure that businesses and consumers understand the new arrangements.
Speaking at the launch, Zambia's Permanent Secretary for Commerce, Trade and Industry, Lilian S. Bwalya, described the moment as historic.
“These two documents will have an undoubted impact on businesses and consumers in the Common Market and beyond,” he said, urging Member States to domesticate the framework to increase compliance and reduce the cost of doing business.