The Digital Markets Act: Implications for African Tech Ecosystems

The European Union's Digital Markets Act (DMA) represents one of the most significant regulatory developments in global technology governance since the advent of the internet. While primarily focused on European markets, its implications extend far beyond EU borders, particularly affecting emerging technology ecosystems across Africa.

Regulatory Spillover Effects

The concept of regulatory spillover—where regulations in one jurisdiction influence practices globally—is particularly relevant in the context of the DMA. African technology companies that operate internationally or aspire to European market entry must now navigate these new compliance requirements.

Key Provisions Affecting African Tech

The DMA's designation of "gatekeeper" platforms creates obligations that extend to their global operations. For African startups seeking to integrate with or compete against these platforms, understanding these requirements becomes crucial for strategic planning.

Market Definition Challenges

Traditional market definition approaches may prove inadequate when applied to digital ecosystems that span multiple continents. African competition authorities are observing how European regulators address these challenges, particularly in cases involving multi-sided platforms.

Case Study: Nigeria's Response

Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) has been particularly attentive to DMA developments. Recent consultations suggest a willingness to adopt similar approaches to platform regulation, albeit adapted to local market conditions.

The FCCPC's 2023 guidelines on digital markets show clear influence from European thinking, particularly regarding:

- Market concentration thresholds - Data portability requirements - Interoperability obligations

South African Perspectives

South Africa's Competition Commission has taken a more cautious approach, emphasizing the need for evidence-based policy making. Commissioner Tembinkosi Bonakele has noted that while European experiences provide valuable insights, African markets present unique characteristics that require tailored solutions.

Infrastructure Considerations

Unlike European markets, many African jurisdictions face significant infrastructure constraints that affect digital market dynamics. The DMA's assumptions about market contestability may not hold in contexts where connectivity and digital literacy remain barriers to entry.

Implications for Cross-Border Enforcement

The DMA's extraterritorial reach creates new opportunities for cooperation between African and European competition authorities. Recent memoranda of understanding between the European Commission and authorities in Nigeria and South Africa suggest growing recognition of these interconnections.

Capacity Building Initiatives

European technical assistance programs are increasingly focusing on digital markets expertise. The EU-Africa partnership on digital transformation includes specific provisions for competition policy cooperation, reflecting the strategic importance of these issues.

Looking Forward

As African technology ecosystems continue to mature, the influence of European regulatory approaches will likely grow. However, the challenge lies in adapting these frameworks to local contexts while maintaining coherence with international standards.

The next phase of DMA implementation will provide crucial insights into the practical challenges of regulating global digital platforms. African authorities would benefit from close observation of these developments, particularly regarding enforcement mechanisms and market impact assessments.

*Dr. Amara Okafor is a Senior Research Fellow at the Centre for Competition Law and Policy, University of Cape Town. Her research focuses on digital markets regulation and competition policy in emerging economies.*