Competition Law at Ethiopia
Here’s an overview of Competition Law in Ethiopia:
Legal Framework
Ethiopia’s competition law is governed primarily by:
Proclamation No. 813/2013 — the Competition Proclamation, which is the main legislation regulating competition in Ethiopia.
Additional relevant regulations and policies issued by the Ethiopian government.
Key Provisions
Prohibited Practices:
Anti-competitive agreements: Agreements or concerted practices that restrict competition, such as price-fixing, market allocation, bid-rigging, and output limitation, are prohibited.
Abuse of dominant position: Firms holding a dominant market position are prohibited from abusing their power, e.g., through unfair pricing, limiting production, or excluding competitors.
Mergers and acquisitions: Mergers that may substantially lessen competition require notification and approval from the authority.
Merger Control:
Businesses must notify the Ethiopian Trade Competition and Consumer Protection Authority (ETCCPA) about mergers or acquisitions that meet certain thresholds.
The ETCCPA reviews transactions to prevent the creation or strengthening of dominant positions that harm competition.
Consumer Protection:
The law also includes provisions to protect consumers from unfair business practices and misleading information.
Enforcement Authority
Ethiopian Trade Competition and Consumer Protection Authority (ETCCPA):
This is the independent body responsible for enforcing competition law, investigating complaints, and imposing sanctions.
It handles merger reviews, market studies, and anti-competitive conduct investigations.
Challenges
Enforcement capacity is still developing, with limited resources and expertise.
Informal economy and lack of awareness among businesses can hinder compliance.
Coordination with sector regulators is sometimes weak.
Recent Developments
Ethiopia has shown increasing commitment to strengthening competition policy as part of its broader economic reforms.
The government is working to improve the ETCCPA’s effectiveness and public awareness of competition law.
Summary
Ethiopia’s competition law framework, led by Proclamation No. 813/2013 and enforced by the ETCCPA, aims to promote fair competition and protect consumers. While still maturing, the legal and institutional setup provides a foundation for regulating anti-competitive practices, merger control, and consumer rights.
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