By Editorial
On 21st September 2025, the Common Market for Eastern and Southern Africa (COMESA) Competition Commission gave its decision in the case where Diageo was accused of engaging in Anti-Competitive Business Practices. The Case Reference number is CCC/ACBP/4/1/2021.
This is not the first time the COMESA Competition Commission is ruling against an alcoholic beverage firm. In April 2025, Heineken Holding was fined USD 900,000 for engaging in anti-competitive practices. The committee argued that Heineken’s territorial restrictions on its distributors, single-branding clauses and minimum resale price maintenance amounted to vertical restraints of trade as per the COMESA Competition Regulations of 2004.
In the case of Diageo, investigation into the matter was commenced on 21st June 2021. The commission based on Article 16 and 21 which both talk about restrictive business practices and the prohibited business practices. In particular, the committee’s determination was based on the clauses in the Production and Distribution agreements that featured, minimum resale price maintenance, single branding restrictions and territorial restrictions.
Upon conclusion of the investigations, Diageo was found to have violated Article 16 (1) of the regulations and was henceforth fined a total of USD 750,000.
The Commission ruled that agreements with distributors in Seychelles and Uganda reduced the freedom of distributors to determine their own prices which undermined intra-brand competition; Ugandan distributors were restricted from dealing in competing products which also harmed inter-brand competition and harm to competition was exacerbated by the dominant position of Diageo in the market; agreements in Uganda also limited distributors from operating outside their allocated territories.
What is the Impact in the Market of this Decision?
Going forward, it means that Diageo/Uganda Breweries Limited Distributors will not have territorial restrictions, single branding restrictions or resale price maintenance.
It also means henceforth, that Diageo/Uganda Breweries Limited Distributors will be allowed to stock brands of competition unless they choose to do otherwise by their own volition.
Watch-out:
With a rumoured Diageo Merger or Acquisition in the pipeline, it would also be time for the Legal Departments of Diageo/EABL to be keen on the COMESA regulations concerning mergers and acquisitions.
It’s also a watch-out for other firms in the market that could find themselves at the wrong-side of the COMESA Competition Commission.
Full Case Here: