Free Market Foundation slams CompCom e-commerce plans

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Free Market Foundation blasts the Competition Commission for advancing the regulation of e-commerce. FMF Takealot Google CompCom

that SA’s largest e-commerce site Takealot and Google use anti-competitive practices to outflank competitors.

Also, the CompCom highlights concerns that monopoly tactics have been used by Takealot and Google to gain an unfair advantage over rivals, including the conglomeration of consumer data across numerous online platforms. The foundation adds: “The fact that Takealot has beaten out its competitors should not be construed as a reason for punishment. The fact that they decide to run their business by gating products, or in whatever manner, should not be penalised since these agreements that give rise to gating are entered into voluntarily.”

“The South African economy is not in a good place. From our unemployment numbers, the numbers of people on social welfare and a tax base that is shrinking thanks to low growth and emigration of high-income earners, one would think the state and regulators would do their best not to exacerbate the situation.

Instead of seeking to legislate competition, it urges the CompCom to “simply allow the market to operate freely. The online intermediation platform market is one of the few bright spots in our economy that the commission with this report seeks to harm and further hasten our march to economic ruin.”

 

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