Competition and Regulation of Mobile Money Platforms in Africa: A Comparative Analysis of Kenya and Uganda

Anthea Paelo; Simon Roberts

doi:10.1007/s11151-022-09858-x

Competition and Regulation of Mobile Money Platforms in Africa: A Comparative Analysis of Kenya and Uganda

Anthea Paelo, Simon Roberts

Centre for Competition, Regulation and Economic Development

Research output: Contribution to journal › Article › peer-review

Abstract

We analyze the competition issues in mobile money in Kenya–where Safaricom is the market leader–and in Uganda: where the market is duopolistic. We evaluate the multi-sided platform characteristics that have underpinned the rapid growth of the lead mobile money platforms and that also imply that the market leaders have substantial market power and can act as gatekeepers. The conduct of the lead firms is assessed along with competition measures and regulatory interventions made in each country. The analysis highlights the importance of–and challenges for–competition enforcement in developing countries to ensure effective rivalry while realizing the gains from innovation in digital platforms.

Original language	English
Pages (from-to)	463-489
Number of pages	27
Journal	Review of Industrial Organization
Volume	60
Issue number	3
DOIs	https://doi.org/10.1007/s11151-022-09858-x
Publication status	Published - May 2022

Keywords

Competition policy
Digital platforms
Economic regulation
Kenya
Mobile money
Uganda

ASJC Scopus subject areas

Economics and Econometrics
Strategy and Management
Organizational Behavior and Human Resource Management
Management of Technology and Innovation

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1007/s11151-022-09858-x

Cite this

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abstract = "We analyze the competition issues in mobile money in Kenya–where Safaricom is the market leader–and in Uganda: where the market is duopolistic. We evaluate the multi-sided platform characteristics that have underpinned the rapid growth of the lead mobile money platforms and that also imply that the market leaders have substantial market power and can act as gatekeepers. The conduct of the lead firms is assessed along with competition measures and regulatory interventions made in each country. The analysis highlights the importance of–and challenges for–competition enforcement in developing countries to ensure effective rivalry while realizing the gains from innovation in digital platforms.",

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AB - We analyze the competition issues in mobile money in Kenya–where Safaricom is the market leader–and in Uganda: where the market is duopolistic. We evaluate the multi-sided platform characteristics that have underpinned the rapid growth of the lead mobile money platforms and that also imply that the market leaders have substantial market power and can act as gatekeepers. The conduct of the lead firms is assessed along with competition measures and regulatory interventions made in each country. The analysis highlights the importance of–and challenges for–competition enforcement in developing countries to ensure effective rivalry while realizing the gains from innovation in digital platforms.

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Competition and Regulation of Mobile Money Platforms in Africa: A Comparative Analysis of Kenya and Uganda

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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