The Competition Commission (CompCom) has extended the period to finalise and complete the Online Intermediation Platforms Market Inquiry (OIPMI) report, to allow the continuation of the inquiry’s consultation process on additional recommendations.
The market investigation into online intermediation platform services in SA was launched in 2021.
The OIPMI was initiated in terms of section 43B(1)(a) of the Competition Act 89 of 1998 (as amended) given that the commission has reason to believe there exist market features which impede, distort or restrict competition among the platforms, and which undermine the purposes of the Act.
The aim is to ensure consumers and businesses that use online platforms − such as Takealot, Uber and last mile delivery services − to reach consumers, are able to benefit from fair competition among online platforms, and that SMEs and historically disadvantaged businesses also get to participate fairly in the online economy.
Whereas previously, the period for completion of the inquiry and the final report was expected on 18 February, the minister of trade, industry and competition has now granted a two-month extension to finalise and complete the report by 18 April.
The gazetted extension and guidelines can be accessed on the commission’s website.
In light of the extension, the CompCom says it continues to call for comments on the inquiry’s recommended guidelines, which seek to prohibit certain conduct of emerging leading platforms that have not yet occurred in some of the intermediation categories, or which may occur in the future.
“After considering the initial submissions on the provisional report recommendations, along with other factors in respect of future enforcement, the inquiry is currently of the view that Section 78 regulations are desirable, as they can strengthen enforcement going forward. Stakeholders are still encouraged to submit comments on the proposed recommendations by the close of business on 28 February,” says the CompCom.
All submissions and comments should be sent to oipmi@compcom.co.za.
The preliminary findings of the report, released last July, identified anti-competitive practices by Google and Takealot.
According to the commission’s investigation at the time, there are 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.
Further information about the inquiry is available here.
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