Enforcing the Unfair Trade Practice Rules of Ethiopia’s Competition Law on E-commerce: The Practice and the Challenge

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2023-11

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Addis Ababa University.

Abstract

This research focuses on examining the adequacy of Ethiopian laws in addressing competition issues within emerging e-commerce marketplaces, with a specific emphasis on unilateral anticompetitive acts. Notwithstanding the recent initiatives and measures taken to foster a free market economy and encourage private sector participation in Ethiopia, the current legal frameworks do not adequately tackle the complexities and challenges arising from the expansion of e-commerce. The study investigates the extent to which current and developing competition laws and institutional frameworks in Ethiopia effectively tackle common unilateral anticompetitive practices within the realm of e-commerce. It argues that the existing competition legislation falls short in adequately addressing issues such as flash crash, cornering or dumping, unrepresentative pricing, failure or refusal to submit trade orders, pace making, marking the closing price, and matching orders. The research reveals that the current legal framework lacks provisions specifically tailored to e- commerce marketplaces, particularly in relation to unilateral anticompetitive acts, thereby failing to adequately address the intricacies of competition in this domain. Moreover, it highlights the limited attention given to non-economic factors and implicit anticompetitive conduct within Ethiopian competition law. This thesis aims to shed light on the practices and challenges within existing laws while providing insights into the necessary legal and institutional reforms required for the effective regulation of competition, with a specific focus on unilateral anticompetitive acts, in Ethiopia's emerging e- commerce marketplaces.

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