Online Marketplaces Competition Law in East Africa

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A large marketplace can help a small seller reach customers and still create dependence. The legal question is when platform scale or conduct affects fair competition.

Contents

Concentration is a signal, not a verdict

Ask what market the platform actually controls

When seller terms raise competition questions

Keep evidence before a dispute starts

What platforms should build into their rules

The practical competition test

Concentration is a signal, not a verdict

An online marketplace can give a small business access to customers it could not reach alone. It can also become the place where the seller depends on search rankings, reviews, payment processing, advertising and delivery. If a platform changes fees, suspends a seller or gives its own products better visibility, the business may have little room to respond. The legal question is not whether a marketplace is large. It is whether the market structure and platform conduct meet the tests in the competition law that applies.

ECDB’s “Amazon Market Concentration: Four in Five Dollars on Amazon Are Spent in Just Five Markets” reports that five national markets generate about 80 per cent of Amazon’s global gross merchandise value. This illustrates how sales can be concentrated. It does not show how an East African marketplace performs, prove dominance in a particular product market, or establish an infringement. An East African analysis needs local evidence about sellers, customers, alternatives and the platform’s actual rules.

Competition law does not usually punish a business merely for becoming successful. A platform may grow because it offers reliable delivery, a wider product range, trusted payments or a better shopping experience. Concern arises when market power gives a platform the ability and incentive to restrict competition in a way the law prohibits. Sellers should distinguish a contract disagreement, a consumer complaint and a competition concern; one event can raise more than one issue, but the legal route and evidence differ.

Ask what market the platform actually controls

Market definition is not an academic exercise. A platform may be strong for fashion sales in one city but face effective alternatives in groceries, electronics or business-to-business trade. A seller may reach customers through physical stores, direct social-media sales, competing marketplaces or messaging services. Those alternatives may or may not constrain the platform in practice. The answer depends on how easily buyers and sellers can switch, the cost of switching and whether other channels provide comparable reach and service.

Rwanda’s Law No. 011/2026, in force from publication on 4 March 2026, offers a current national example. Article 8 says dominance is assessed by considering the enterprise’s position relative to competitors, market conditions and barriers to entry or expansion, constraints from current or potential rivals, customer bargaining power, and the history of competition. A high market share may be relevant, but the question is whether real alternatives can discipline the platform.

For conduct affecting trade across the East African Community, the EAC Competition Act, 2006 provides a regional framework for fair competition and consumer welfare. The East African Community Competition Authority lists the 2025 Mergers and Acquisitions Regulations and complaints, investigations and hearings rules alongside the Act. A business should check current scope and thresholds before assuming a matter is only national or automatically regional. Geographic reach, affected trade and the applicable statutory test all matter.

When seller terms raise competition questions

Consider a platform that requires sellers to use its delivery service, prevents them from offering a lower price elsewhere, charges different commissions without an apparent commercial reason, or removes a seller’s listing after launching a similar in-house product. Each fact could matter, but none proves illegality on its own. The analysis asks who has market power, what the term or decision does, whether it disadvantages rivals or limits customer choice, and whether a legitimate operational explanation exists.

Rwanda’s 2026 law prohibits abuse of a dominant position that may appreciably affect the Rwandan market or part of it. Article 9 identifies examples including unfair trading practices, restricting output or technical development to customers’ prejudice, and applying dissimilar conditions to equivalent transactions so trading partners face a competitive disadvantage. The law addresses other practices too. These rules do not make every commission, exclusive arrangement or platform preference unlawful. They make context, market power and effect central.

A seller should read the marketplace contract before signing and again when the platform changes its rules. Pay attention to the legal entity operating the service, commissions and deductions, advertising charges, suspension and appeal procedures, data access, control of customer relationships, exclusivity and listing rankings. If the rules let the platform change essential terms without notice, assess the operational risk and preserve each version. A dispute is harder to explain when the seller cannot show what the terms said at the time.

Keep evidence before a dispute starts

The records that matter are ordinary business records. Save the seller agreement, fee schedules, policy updates, suspension notices, payout statements and messages with platform support. Keep dated screenshots of listing visibility and search results when a sudden change affects sales. Record dates, products and channels involved. If several sellers report similar changes, each should preserve their own records rather than relying on a general claim that “everyone is affected.”

Do not alter or coordinate business records to strengthen a complaint. Describe what happened, when it happened, the commercial effect and which platform action is challenged. Separate documents that show a fact from the seller’s explanation of it. This helps a marketplace, regulator or counsel test the concern without turning an ordinary disagreement into an unsupported allegation.

What platforms should build into their rules

Platforms also benefit from clear procedures. Their terms should explain how commissions are calculated, what conduct can trigger a listing restriction, how sellers can challenge a decision, what data is used for ranking or recommendations, and what notice accompanies material policy changes. A platform that operates both a marketplace and its own retail business should identify potential conflicts and maintain a documented review process. Clear governance can reduce complaints even where the conduct is lawful.

Rwanda’s 2026 law separately addresses online intermediaries. Article 43 requires specified information about the intermediary and the e-commerce operators with which it has contracted, and arrangements concerning personal-data protection. Articles 45 and 46 address information supplied through intermediary services and removal of information that may give rise to liability. These are concrete obligations; they should not be mistaken for a complete statutory code on algorithmic ranking or self-preferencing.

The practical competition test

For a seller, ask what dependence exists, what platform decision caused the problem, what alternatives were available, and what records show the effect on the business or customers. For a platform, ask whether it can explain the rule, apply it consistently, identify the decision-maker and provide a review path. These questions do not decide liability. They help a company understand whether it has a commercial problem, a consumer-compliance issue or a competition concern that deserves formal legal assessment.

The ECDB concentration story is a reason to look beyond the largest marketplace and measure what makes it powerful. In East Africa, that means gathering evidence on seller dependence, customer switching and cross-border reach, then applying the relevant national or regional law. Scale may be a reason to investigate. The legal conclusion still has to be earned with facts.


Sources Mentioned in This Business Guide

Law No. 011/2026 of 26 February 2026 relating to Competition and Consumer Protection, Official Gazette of the Republic of Rwanda, Special Issue of 4 March 2026, especially Articles 8, 9 and 43–46; East African Community Competition Act, 2006, as amended; East African Community Competition (Mergers and Acquisitions) Regulations, 2025; East African Community Competition Authority, Complaints, Investigations and Hearings Rules, 2025; ECDB, “Amazon Market Concentration: Four in Five Dollars on Amazon Are Spent in Just Five Markets” (11 August 2026).

Suggested Citation

Ronald Serwanga, “Online Marketplaces Competition Law in East Africa,” East Africa Legal Insight (6 October 2026).