E-COMMERCE AND THE FUTUTE OF COMPETITION REGULATION UNDER ETHIOPIAN LAW

Abstract

Ethiopia has recently introduced various policies and strategies to promote free market economy and engagement of the private sector in economic activities. These policy documents and strategies envision the development of efficient market competition and the attendant regulatory framework. These policy aspirations are in the process of being translated into legal frameworks which, among other objectives, would create a conducive environment for the proliferation of competitive e-commerce marketplaces. With the rise of new online marketplaces, novel issues of completion are bound to arise. Chief among such issues are Big Data and its algorithm, network effect, disruptive effects of ecommerce on offline market, net neutrality, multi-side markets and free offer of products. The Trade Competition and Consumer Protection Proclamation No. 813/2013 is the prime operative competition legal framework in Ethiopia. But a set of new laws are now in the offing. This thesis examines whether, and to what extent, relevant Ethiopian laws attend to the issues of competition in emerging e-commerce marketplaces. As such, it thoroughly investigates whether the current and developing competition legal and institutional framework attend to common anticompetitive conducts in e-commerce. The thesis argues that relevant competition legislations do not adequately address e-commerce anticompetitive practices. It demonstrates that novel ecommerce issues such as control of data, net neutrality, indirect network effect, disruptive innovation, free offer of product and their anticompetitive effect, multi-sided market and their regulation, disruptive effects of e-commerce on incumbents are not fully addressed under the existing legal framework of relevant laws, including current and draft competition law instruments. It also shows that most of these laws do not appear to have e-commerce marketplace in mind. Moreover, this thesis also indicates that Ethiopian relevant competition law falls short of attending to the complexities of e-commerce market competition, particularly to non-price factors and tacit anticompetitive conducts.