Forget about Ruto and his communist brigade who go around singing the song of liberation for the poor. Yes, it’s true that a lot of oppression goes on in the country. However, it isn’t by some shadowy figures holed up in a dingy dark corner. No. On the contrary, it’s done openly and in broad daylight. Although ”broad daylight” may be a little bit of a stretch. It’s done in the early evening. Around 7:30 to be exact. If you are keen tonight, immediately after the Kiswahili news by Citizen, there’ll be an advert of Direct Line Assurance. Here is why this might be exploitation and illegal by S.K Macharia.
S.K Macharia owns Royal Media Services. He also has interests in Direct Line Assurance. In fact some sources say he is the owner.
In Kenya, the Competition Authority states that one is a dominant player in the industry if he controls more than 50% of the market, or has excessive influence.
While it isn’t illegal to be a dominant player, it’s illegal to use your power to the detriment of others. S.K using his media might to outmuscle competitors in the insurance industry is fertile ground for investigations by the Competition Authority.
Competition Authority of Kenya says this about dominance;
What is dominance? A dominant player is the player who controls more than half of the market. A dominant player could also control less than 50% of the market, but have market power.
Market power refers to the ability of a firm to control prices, to exclude competition or to behave, to an appreciable extent, independently of its competitors, customers or suppliers.
It is important to note that dominance is not prohibited/illegal. What is prohibited is the abuse of a dominant position.
Examples of abuse of dominance: a. Imposing unfair purchase or selling prices or other trading conditions; b. Limiting or restricting production, market outlets or market access etc.
Examples of abuse of dominance: c. Applying dissimilar conditions to equivalent transactions with other trading parties; d. Abuse of an intellectual property right.
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