SOUTH AFRICA'S COMPETITION AUTHORITIES AND THE DEVELOPMENT OF E-COMMERCE

According to Mamongae Mahlare, the CEO of Takealot Group, it is crucial for South Africa’s competition authorities to support the development of e-commerce rather than hinder it. This statement was made during an interview with the TechCentral Show, highlighting the need for a favourable regulatory environment that promotes the growth of the online retail sector.

The Competition Commission is preparing to release a final report resulting from its online intermediation platforms inquiry, although the publication has been delayed multiple times. An initial draft of the report caused concerns among e-commerce companies, including Takealot. The commission’s findings regarding Takealot’s “self-preferencing conduct” due to its hybrid business model were outlined in a preliminary report from July 2022. Takealot operates both an online marketplace for third-party sellers and its own retail division that competes with them.

Mahlare emphasizes the importance of considering the potential benefits of the e-commerce industry in driving economic growth, job creation, and economic participation. Takealot’s collaborations with over 18,000 small businesses have resulted in the support of more than 33,000 local jobs through platforms such as takealot.com, Mr D Food, and Superbalist. These partnerships demonstrate how the Takealot model can facilitate the growth of small businesses and contribute to an inclusive and diverse economy.

Mahlare argues that growing small businesses aligns with the objectives of the Competition Commission. However, the commission seems to view Takealot’s impact on the market differently. It has accused the company of enticing suppliers of successful products away from marketplace sellers and providing Takealot’s own buyers access to marketplace seller data. Allegedly, this data is used to make decisions about introducing in-house brands on Takealot’s retail storefront.

Although Mahlare is concerned about the potential negative impact of the inquiry’s outcome, she is also sympathetic to the commission’s intent and believes Takealot is aligned with that intent.

“I hope that what comes out of [the inquiry] is that the business model and the conduct of Takealot Group has been far more aligned to the objectives of the Competition Commission than may have been obvious.”