A mini shopping cart on financial documents, symbolizing e-commerce and consumer spending.
Rwanda recently adopted the 2026 Law governing Competition and Consumer Protection, introducing several significant changes aimed at promoting fair competition, safeguarding consumer interests, and aligning the regulatory framework with current market trends. The new law includes provisions that will substantially influence business conduct and strengthen consumer protection in Rwanda.
Post-merger notification requirement where competition concerns arise
One of the most significant reforms introduced by the new law is the post-merger notification requirement. Even after a merger has been completed, authorities now have the power to review transactions that may initially appear harmless but later raise competition concerns.
As under the previous legislation, companies intending to merge are required to notify the Regulatory Authority when their combined turnover exceeds a prescribed threshold. Where the threshold is not met, the merger may proceed without prior notification. However, the new law introduces an important addition. Under Article 11(3), the Regulatory Authority may require a company that has already completed a merger to notify the transaction within 12 months if it determines that the deal could reduce competition or negatively affect the public interest.
This provision reflects a more flexible and proactive approach to merger control, ensuring that even transactions that fall below the notification threshold remain subject to regulatory oversight where competition concerns arise.
Merger approval subject to conditions
Another major reform is that, unlike the repealed law, the new law explains the conditions that merged enterprises must comply with, aimed at curbing possible anti-competitive impacts.
Article 16 states that these remedies may be either structural, such as divestitures or withdrawal from a joint venture, or behavioural in nature, and may include granting licences to intellectual property rights, access to key assets, data or technology, non-discrimination between customers, suppliers and service providers, and the discontinuation of exclusive arrangements.
It is also possible for the Authority to require both structural and behavioural remedies to ensure the market remains in good competitive health.
Market inquiry
Another notable and welcome feature of the new law is the introduction of market inquiry powers. Under Article 20, the Regulatory Authority is empowered to step in where there are reasonable grounds to suspect that certain activities may harm competition in a particular sector.
This gives the Authority the ability to closely examine market conditions, identify barriers to fair competition, and recommend appropriate corrective measures. This is a significant step forward, as it allows regulators to act proactively rather than waiting for competition problems to fully materialise.
Regulation of e-commerce
The new legislation acknowledges the growing role of e-commerce in the Rwandan economy. Articles 41 to 48 set out clear guidelines on what qualifies as e-commerce, how businesses are to be licensed, the obligations of online companies, and the rights of consumers in the context of online trade. The law further specifies the procedures to be followed where an e-commerce business must be closed.
Taken together, these measures are intended to make digital markets more transparent while ensuring that consumers are adequately protected when they make purchases or conduct business online.
Introduction of a leniency programme
Another significant reform is the introduction of a leniency programme. Article 58 gives the Regulatory Authority the power to establish a mechanism for the waiver or reduction of sanctions for an enterprise that voluntarily provides information or evidence to support an investigation into agreements or practices that negatively affect competition or consumer rights.
This process encourages companies engaged in anti-competitive practices, particularly cartel agreements, to cooperate with the Authority in order to receive reduced penalties.
A clear path to justice
The new law also provides much-needed clarity on the appeals process. Article 63 sets out the procedures to be followed when challenging a decision: first, requesting the Regulatory Authority to reconsider its decision; second, appealing to the Independent Appeal Committee; and finally, taking the matter to the courts.
In addition, Article 64 introduces the Independent Appeal Committee as a new mechanism for handling appeals against decisions of the Regulatory Authority.
This gives consumers and businesses a clearer, more structured path to seek justice.
Regulation of state subsidy issuance
Another aspect covered in the new law is the issue of state subsidies and their effects on market competition. Article 69 defines a state subsidy as the provision of financial assistance by a government institution to a business using public funds, based on criteria established by the government. The law also addresses how state subsidies are awarded, obligating the government to inform the Regulatory Authority whenever a subsidy reaches or exceeds a specified threshold.
This regulation is aimed at introducing transparency and ensuring that state assistance does not give an undue or unfair advantage in the market.
Regulation of multi-level marketing
Finally, the law also introduces rules on multi-level marketing. It defines this as a business model in which individuals earn income not only by selling products or services but also by recruiting others to join the network and sell as well. To regulate this, the law requires anyone wishing to operate such a business to first obtain permission from the Regulatory Authority before commencing activities.
It is a significant step towards safeguarding consumers against potentially manipulative or misleading schemes, while ensuring that such ventures operate within clearly defined legal limits.
The 2026 Competition and Consumer Protection Law is not merely a change in legislation; it demonstrates Rwanda’s commitment to building a fair, open, and consumer-friendly economy. It also sends a clear message to businesses that this is the time to review and adjust their operations to comply with the new rules.
The writer is a practising commercial attorney.
