Multinational technology company Opera Software Ireland Limited has been directed by the Competition Authority of Kenya (CAK) to unblock Odibets, a local betting firm, and restore access to its gamblers after it emerged that Opera had been undermining the firm by financially starving it of business from members of the public.
Context and Implications
This is happening amidst a raft of stringent regulatory measures on advertising and access to betting sites in Kenya. The CAK’s order is meant to cushion Odibets from financial losses occasioned by Opera’s activities and to encourage a level playing ground in the battle for market share among betting companies.
CAK’s Directive
The order by CAK states: “Opera Software Ireland Limited is hereby directed forthwith to cease causing and desist from causing Odibets financial loss by locking out Odibets from accessing its browser and redirecting its clientele to other betting sites”.
The order of direction shall operate pending completion of the ongoing investigations on the dispute pitting Odibets against Opera.
Background of the Issue
It is reported that Opera has been blocking access to Odibets and redirecting users to rival sites, which has significantly affected the business operation of Odibets. This caught the attention of the CAK, which aims to ensure that all firms work under the same rules of fair competition.
High Court Ruling and BCLB Regulations
Earlier in the year, the High Court had directed the Betting and Licensing Control Board (BCLB) to stop the use of speed dial by betting firms to market online. The BCLB had initially warned against the trend in advertisements, citing that it brought about harm to the vulnerable internet users, key among them being the minors.
Odibets and the Betting Industry
Odibets, under Kareco Holdings Limited, is among the 128 betting companies fighting for a share of the billions of shillings in the lucrative gambling market in Kenya. The sector has seen enormous growth in Kenya and remains among the most competitive, even with the increased taxation. Kenyan gamblers placed bets worth Sh620.97 billion between 2018 and 2022, indicative of the sector’s quick growth.
Opera’s User Base in Kenya
With an estimated 13.5 million Kenyan users, mostly people with feature phones, Opera is a platform likely to greatly influence the dynamics in the market regarding the betting industry.