NAIROBI, Kenya, July 27 – The Competition Authority of Kenya (CAK) has dropped an abuse of dominance case against ceramic tiles manufacturer KEDA after finding that the company does not control a large enough share of the market to be considered dominant.
The complaint alleged that the Chinese-owned manufacturer was engaging in anti-competitive practices, including predatory pricing and exclusive dealing.
However, CAK said its investigations found that KEDA holds only 25 percent of Kenya’s ceramic tiles market.
“The Authority established that KEDA was not dominant in the market for the manufacture and distribution of ceramic tiles in Kenya, where it enjoyed a 25 percent market share and lacked market power as the market was contestable. The matter was therefore closed,” CAK said in its latest annual report.
Under Kenya’s Competition Act, abuse of dominance is prohibited and targets practices such as unfair pricing, market restriction and exclusionary conduct.
A company is presumed dominant if it controls at least 50 percent of a relevant market, while firms with a market share of between 40 and 50 percent may also be considered dominant unless they demonstrate they do not have market power.
