ACF Says Google “De Facto Monopoly” in Africa’s Search Engine Market

The African Competition Forum (ACF) has released its Digital Market Landscaping Survey (5 December), revealing insights into search engine dominance across 16 participating African nations. The report underscores Google’s de facto monopoly in the region, commanding over 90% of the search engine market share.

Key Findings

  1. Advertising Reliance:
    Google is a critical gateway for businesses seeking to reach consumers, particularly through search engine advertising. In South Africa and Kenya, where data is available, digital advertising via search engines constitutes a significant portion of marketing activity.
  2. Search Engine Results Pages (SERP):
    In several countries, including Malawi, Mauritius, and Mozambique, Google’s SERP lacks Shopping and Travel Unit content. However, Mauritius, Seychelles, and Malawi report the inclusion of Travel Unit content.
  3. Competition Concerns:
    The South African Competition Commission (CCSA) is the only participating agency to have investigated Google’s practices. The CCSA’s Online Intermediation Platforms Market Inquiry criticized Google’s monetization strategies, including the prominence of paid search results that are insufficiently distinguished from organic results. The inquiry concluded that these practices stifle competition, disadvantaging smaller local platforms against larger, globally backed firms.

Implications for Africa’s Digital Market

The report highlights a lack of competition enforcement in the digital space across many African nations, with agencies citing an absence of complaints or data. However, it calls attention to the need for greater scrutiny of Google’s practices to ensure fair competition and support local platforms.

As digital markets grow in importance, the ACF’s findings underline the urgency for regulators to address potential anti-competitive behaviors in Africa’s online economy.

Source: https://competitioncommission.mu/wp-content/uploads/2024/12/ACF-Digital-Platform-Study_Proof2_opt.pdf

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