Kenya: Watchdog clears dominant operator Safaricom

The Competition Authority of Kenya (CAK) has warned Parliament against punishing the dominant company Safaricom by stating that it will have ripple effects on the entire economy and that the action is not needed.

CAK announced it had not established evidence of Safaricom, which has a 67% market share, abusing its dominance in any of its business sectors, eliminating the need for action by regulators.

The watchdog stated the mobile telecommunication sector is dynamic and any drastic regulatory action will impact financial services, among other sensitive areas.

“Any regulatory intervention should be aimed at supporting and increasing consumer welfare and at no time should regulatory intervention have an object of deepening private shareholders’ gains,” Wang’ombe Kariuki, the director general of the Competition Authority, said.

Safaricom has in the past been found guilty of entering restrictive agreements with its mobile (M-Pesa) money agents which prohibited the selling or promotion of services by its rivals, Kariuki said.

Full Content: Reuters, Daily Nation

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