Competition Commission to investigate South Africa's data centre and cloud services markets

Daniel Puchert

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Competition Commission to tackle data centre operators in South Africa

The Department of Communications and Digital Technologies (DCDT) wants the Competition Commission to investigate South Africa's data centre and cloud services markets to identify anti-competitive behaviour.

In its 2024 National Policy on Data and Cloud, published on 31 May, it also proposed that the commission consider reviewing and adapting the Competition Act concerning the cloud and data market.
 
Yeah definitely an area that is anti-competitive.. promise.

Comp Com seriously doesn't have enough real work to do it seems.
 
FIX THE POTHOLES FIRST.

If you cant compete then LEGISLATE.
 
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Why don't they investigate Eskom, the most egregious example of anti-competitive behaviour ever seen in South Africa?
 
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Bit late to party on that, Eskom already being split in to three and they lost their monopoly.
So would be a bit pointless at this stage.....

Why don't they investigate Eskom, the most egregious example of anti-competitive behaviour ever seen in South Africa?
 
Yeah definitely an area that is anti-competitive.. promise.

Comp Com seriously doesn't have enough real work to do it seems.
My first thought as well. But then 30 seconds later changed my mind. This mirrors what is happening in Europe and the UK.

So not sure what the local competition commission will get done on its own. But hopefully with some force it will get stuff done.

So things I really like to see:
1) symmetrical network charges. Outbound network charges are ridiculous and it is done to keep data in cloud. All of them did a scummy thing by saying they addressed it by allowing migration. It is not addressed. They are forcing companies to keep data within the hyperscalers ecosystem because you can't practically use some external services because the bandwidth will be too expensive. I mean it is amazing that a tier 2 hosting provider gives almost unlimited bandwidth away for zero rands but you pay through your nose with hyperscalers.

2) Make sure that tier 2 hosting providers have fair access to licenses. Mostly apply to MS. Hosting virtual desktops should be possible with tier 2 providers but licensing and so forth is an issue. Same with Windows AD.
 
My first thought as well. But then 30 seconds later changed my mind. This mirrors what is happening in Europe and the UK.

So not sure what the local competition commission will get done on its own. But hopefully with some force it will get stuff done.

So things I really like to see:
1) symmetrical network charges. Outbound network charges are ridiculous and it is done to keep data in cloud. All of them did a scummy thing by saying they addressed it by allowing migration. It is not addressed. They are forcing companies to keep data within the hyperscalers ecosystem because you can't practically use some external services because the bandwidth will be too expensive. I mean it is amazing that a tier 2 hosting provider gives almost unlimited bandwidth away for zero rands but you pay through your nose with hyperscalers.

2) Make sure that tier 2 hosting providers have fair access to licenses. Mostly apply to MS. Hosting virtual desktops should be possible with tier 2 providers but licensing and so forth is an issue. Same with Windows AD.

So there are issues in the market, absolutely no question.

Is the market anti-competitive to the point it needs Comp Com investigation, when there are other fundamentally more broken markets in this country though is the more important question.

Also this market is probably way more complicated than the Comp Com will be able to get its head around, there will be international agreements, and architectures and all sorts at play that have impacts on our small insignificant local market in ways that will be unfathomable to the Comp Com.
 
Competition Commission to tackle sofa operators in South Africa

The Department of Communications and Digital Technologies (DCDT) wants the Competition Commission to investigate South Africa's sofa and couch services markets to identify anti-competitive behaviour.

In its 2024 National Policy on Sofas and Couches, published on 31 May, it also proposed that the commission consider reviewing and adapting the Competition Act concerning the $ market for buffalo payments.
FTFY
 
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