The Competition Commission has taken aim at a wide set of digital and online platforms in South Africa, demanding major changes across the board.
The Competition Commission’s wide-sweeping Online Intermediation Platforms Market Inquiry has come with a host of demands for dominant players in South Africa’s digital space.
The final report, published on Monday , has now singled out these dominant players and ordered that they take remedial action to improve competition in their respective sectors, or to cut out otherwise anti-competitive behaviour.The inquiry identified Takealot as the dominant online retailing in the country – although it acknowledged that other, bigger players may still enter the market.
Specifically, the commission took aim at ‘anti-steering’ practices, which blocked apps from directing users to other payment methods that circumvent the app stores , as well as their failure to localise search – so local apps are overshadowed by bigger players.Stop preventing apps from directing consumers to pay on the app’s own website, and ensure continued free use;
On the one hand, the dominant players draw restaurants to list through offering lower commission fees for franchise exclusivity, undercutting local services. On the other, they make massive gains on charging high commission fees for independent restaurants. The key takeaway in the classifieds sector is that listing prices prohibit competition, while the property sector, in particular, faces hurdles due to syndication costs and packages which impede estate agents.
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