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Kenya introduces market power regulations

Kenya's telecoms regulator says that new regulations to prevent large firms abusing their dominant position in the sector are not targeted at Safaricom, the country's biggest operator, or any other company, notes Reuters. “Amendments to the sector's competition law, due to come into effect any time, will give the regulator more powers to declare a firm to be dominant, a step that could lead to penalties. However, the director general of the Communications Authority of Kenya, Francis Wangusi, said the regulator did not aim to penalise any company just for being dominant, but only if there was abuse of its position in the market.” Wangusi said it could be up to 18 months before enough work had been done to determine if any player was dominant – defined as having more than a 50% share of a market segment. Wangusi said the new regulations would further break down the telecoms sectors into segments including mobile and fixed voice, data, text messaging and mobile money transfer services. “In all these markets, we would not apply the same rules. If for example you have significant market power in retail services, you will not have the same rules regulating you like when you have it in wholesale,” he said.

  • Monday, 24 August 2015

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