Liberal think tank the Free Market Foundation has
sharply criticised the Competition Commission (CompCom) for advancing the regulation of e-commerce platforms such as Takealot, suggesting the move amounts to nationalisation.
The foundation says anti-trust authorities seem to have concluded that “just because other e-commerce sites are not as successful as Takealot, then it means the operations of Takealot have an anti-competitive effect deserving of state regulation”.
This follows
recent findings by the CompCom in its
Online Platforms Market Inquiry that SA’s largest e-commerce site Takealot and Google use anti-competitive practices to outflank competitors.
The inquiry focused on digital platforms with intermediate online transactions between business and consumers, with the scope covering e-commerce, app stores, travel and accommodation platforms, food delivery and online classifieds.
In its recommendations, the CompCom said it had reasons to believe the two tech companies, among other online operators, have impeded or restricted fair competition among their competitors, and these actions may undermine the purpose of the Competition Act.
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