Regulator spokesperson Siyabulela Makunga said that measures regulating digital platforms are already boosting competition and reducing business costs.
South Africa’s Competition Commission is tightening oversight of digital platforms and expects that the implementation of measures developed under the Online Intermediation Platforms Market Inquiry (OIPMI) will save South African businesses R1.16 billion (approx. $68 million). This was stated by the Commission’s spokesperson, Siyabulela Makunga, in an opinion column published for World Competition Day (December 5).
According to Makunga, the Commission regularly evaluates the effectiveness of its decisions:
“We constantly ask ourselves whether the outcomes we are delivering are tangible and offer relevant results for the people of SA.”
He noted that special attention is given to supporting small and medium-sized enterprises (SMEs) and companies owned by historically disadvantaged persons (HDPs).
Over the past year, the regulator held a series of engagements with stakeholders focused on improving access to funding for digital start-ups of SMEs and HDPs and on implementing OIPMI recommendations. One example was Booking.com’s decision to remove restrictive pricing clauses for hotels, which, according to the Commission, strengthened competition in the sector and lowered barriers for smaller companies.
The Commission is also monitoring how online platforms are implementing support measures: Booking.com has already launched dedicated programmes for HDP-owned accommodation providers. Preliminary estimates show that in the food delivery and e-commerce sectors alone, benefits for SMEs and HDP-owned businesses have exceeded R40m to date.
Through OIPMI, the Commission lowered barriers that discourage the effective participation of smaller businesses in eCommerce, travel and tourism (accommodation providers), food delivery (restaurants and food delivery platforms) and online classifieds (car dealerships and estate agents).
“The implementation of the remedial actions proposed by the OIPMI is still ongoing and is expected to ultimately result in savings of R1.16bn to businesses in SA,”
the Commission’s spokesperson emphasised.
In addition, in November the regulator published its final report in the Media and Digital Platform Market Inquiry (MDPMI), noting that the global transition to digital platforms has severely undermined traditional revenue models and has eroded the financial positions of news media.
According to Siyabulela Makunga, the regulator intends to continue playing its part in fostering a “competitive, dynamic, deconcentrated and inclusive economy,” responding promptly to emerging risks for businesses and consumers.
Source: Sowetan
