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The Competition Commission’s Market Inquiry into Some Leaders of The Digital Economy in SA

Readers will recall that the Competition Commission (CompCom) published a paper mid-2020 suggesting an inquiry into “market leaders” such as Takealot, Mr. D, Uber, the Apple App Store, and Travelstart. CompCom followed that up with a proposal to investigate and finally with some questions. In each case, EFSA responded (see ) and pointed out that (1) the market is far too young to be investigated, (2) that the ecommerce sector is not just a very few players but a vast number of sellers and support services which could be seriously affected if the leaders were forced to diversify since there are many interrelationships; (3) investigations potentially could reduce foreign direct investment (SA has recently dropped from its leading position to 3rd  in ranking for FDI in Africa – see below); and (4) the sector lacks data which will make the CompCom’s investigation impossible to undertake fairly.

EFSA has been invited to give evidence at the Public Hearing on 3 Nov. The interviews will be put up on YouTube. Readers will be given the link in next month’s Newsletter. However, if any reader would like to comment to me, please let me know at [email protected]   

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