ABSTRACT

IMPLICATIONS OF THE GLOBALIZING DIGITAL RETAILING ON COMPETITION AND CONSUMER PROTECTION IN COMESA COUNTRIES

Digital retailing has become one of the major factors contributing to globalization of markets with a substantial impact on trade and consumer welfare at the national, regional as well as multilateral levels. However, digital retail base in developing countries remains relatively low due to competitiveness challenges including weak institutional frameworks, inadequate supportive infrastructure, limited market size and skills gap, among others which make it difficult for an individual developing country to apply policies to effectively address competition and consumer protection related challenges.  As a result, some of the developing countries may find it difficult to apply competition and consumer protection policies to fully utilize digital retail potential while ensuring consumer welfare in the market. The challenges are exacerbated by practices in foreign territories, where developing countries have no jurisdiction, but which have an impact on them due to cross border effects. The study therefore sought to identify specific policy options and implementation approaches countries in the Common Market for Eastern and Southern Africa (COMESA) can adopt to address the multi-jurisdictional limitations of digital retail to promote effective competition and ensure consumer welfare while harnessing the potential of ecommerce in the region.