Multinational beverage group Diageo plc has been penalised USD 750,000 by the COMESA Competition Commission (CCC) for contractual practices that restricted competition across several member states, including Uganda, Eswatini and Zambia.
The Common Market for Eastern and Southern Africa (COMESA) is a regional economic bloc of 21 member states headquartered in Lusaka, Zambia. It promotes regional integration through trade and investment and enforces fair competition laws across its member countries via the CCC.
The probe into Diageo began in June 2021 after the CCC received complaints of distribution agreements containing clauses on minimum resale pricing, single-branding obligations and territorial restrictions. These arrangements were found to limit distributors from selling beyond designated territories and hinder cross-border trade within the bloc.
Rather than admit liability, Diageo entered into a Commitment Agreement in May 2025 under which it pledged to remove those restrictive contract clauses, stop enforcing territorial bans, permit passive sales across the region, and submit compliance reports over the next three years.
The fine marks one of the most significant enforcement actions by the CCC in the beverage sector, underscoring that even corrective action taken before a full decision may not exempt a company from penalties when anti-competitive behaviour is found to have occurred.
