The AfCFTA Protocol on Competition Policy

The chapter critically evaluates the current review of traditional competition policy in the African Union (AU) within the architecture of the African Continental Free Trade Area (AfCFTA) to assess whether the adopted reforms reflect the realities of the digital markets. It explores the challenges faced by competition authorities in digital markets, including complex market structures, network effects, zero-price services, multi-sided markets, and the monetization of data. The chapter discusses the evolution of relevant market definition to accommodate the unique character of digital markets, incorporating concepts such as zero-pricing and multi-sided markets, and adapting the small but significant non-transitory increase in price (SSNIP) into a small but significant decrease in quality (SSNDQ). It also examines the integration of gatekeepers’ ex-ante obligations and the concept of economic dependence into the AfCFTA Protocol on Competition Policy to effectively deal with dominant digital undertakings. The chapter highlights the need for coordination of enforcement activities in competition, consumer welfare, and data protection to regulate the digital sector effectively. It concludes that future regulations of the AfCFTA Protocol on Competition Policy must adopt robust enforcement strategies to effectively regulate the digital markets, including the adaptation of relevant market definitions, the integration of gatekeepers’ ex-ante obligations, and the coordination of competition, consumer welfare, and data protection policies.