In a landmark move aimed at promoting fair competition in the digital landscape, the South African Competition Commission has put forward far-reaching recommendations and findings targeting major online platforms, including Google, Takealot, Booking.com, Uber Eats, Apple, and others. The proposed measures seek to create a level playing field for smaller businesses and empower them to compete effectively in the rapidly expanding digital market.
The Competition Commission’s investigation, carried out over an extensive period, revealed potential anti-competitive behaviour and market dominance by certain digital giants. The findings raised concerns about the impact of these platforms on smaller businesses and consumers, prompting calls for decisive action to promote competition, innovation, and consumer choice.
Key recommendations from the Competition Commission include:
- The inquiry has asked Android, run by Google and the Apple app store to curate SA developed apps so these are visible to users and can compete with popular international apps. The app stores must provide free advertising credits to SA app developers to promote their products.
- It expects Google not to promote its own search results such as Google Travel or Google shops. Google is required to implement in SA measures taken in Europe to comply with similar provisions in the Digital Markets Act to address “self-preferencing”.
- Google needs to add a SA flag to local businesses showing up in search results to allow consumers to support local businesses. It must also provide millions of rand worth of free advertising to SA sites.
- The website Booking.com cannot force hotels to offer their lowest prices on its website, as other accommodation websites or hotels’ own websites are unable to compete on price.
- National restaurant chains cannot restrict their franchises from using food delivery platforms such as Uber Eats, Mr Delivery or smaller delivery services. Some delivery services such as Bolt cannot attract big restaurants because of these restrictions.
- UberEats and other delivery services must tell consumers if they add a surcharge to the restaurant menu price.
- Property24.com, Cars.co.za and Auto Trader need to offer lower rates to small business or small estate agents who advertise goods on their platforms as currently big businesses that advertise more pay less.
The Competition Commission’s binding recommendations have been met with widespread support from smaller businesses, industry experts, and consumer advocates. They view the proposed measures as a crucial step towards levelling the playing field and fostering a more inclusive and competitive digital economy.