[kictanet] Safaricom dominance report proposes an impractical solution

Ngigi Waithaka ngigi at at.co.ke
Sat Mar 4 09:00:32 EAT 2017


Ali,

Is the issue about Market Dominance really? Most conversations I have seen
are drifting towards just declaring Safaricom as Market Dominant! That's
not enough.

What is crucial is either the *abuse* and *risks* based on that market
dominance, the equivalent of too big to fail!

And what is abuse? Say Safaricom based on its dominance as a data provider
decided to promote it's LittleCab venture by slowing down Internet traffic
for Uber & other competition users (incidentally, I was in a Uber ride not
long ago and the driver mentioned strongly that he believes that is so...)

The studies that need to be undertaken should relate to whether Safaricom
has used its position to advance its interests illegally.

However, regulators also should stop sleeping on their job, including CBK
who should *mandate* that all Money Transfers Services (M-Pesa et.al)
should be inter-operable and have a clearing house similar to banks within
at most 6 months.

That in one stroke would take most risk off M-Pesa.

Regards

On Fri, Mar 3, 2017 at 6:17 AM, Ali Hussein via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> John
>
> I quote you:-
>
> "...a declaration of dominance in whatever market segments.That is a
> major admission of market failure under competition law.."
>
> How is Dominance now being equated to market failure?
>
> Have we reached a point where we allow free markets and then when someone
> gains Dominance we declare market failure?
>
> How now?
>
> Here's an interesting definition of Market Failure:-
>
> https://en.m.wikipedia.org/wiki/Market_failure
>
> *Ali Hussein*
> *Principal*
> *Hussein & Associates*
> +254 0713 601113
>
> Twitter: @AliHKassim
>
> Skype: abu-jomo
>
> LinkedIn: http://ke.linkedin.com/in/alihkassim
>
> "We are what we repeatedly do. Excellence, therefore, is not an act but a
> habit."  ~ Aristotle
>
>
> Sent from my iPad
>
> On 2 Mar 2017, at 8:28 PM, John Kariuki via kictanet <
> kictanet at lists.kictanet.or.ke> wrote:
>
> a declaration of dominance in whatever market segments.That is a major
> admission of market failure under competition law a
>
>
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-- 
*Regards,*

*Wait**haka Ngigi*
Chief Executive Officer | Alliance Technologies | MCK Nairobi Synod Building
T +254 20 525 0750 |Office Mobile: +254 716 201061 | M +254 737 811 000
www.at.co.ke
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