South Africa’s competition authorities should be careful to support rather than obstruct the development of e-commerce in South Africa.
This is according to Takealot Group CEO Mamongae Mahlare, who was speaking to the TechCentral Show (TCS) in an episode that will be published on TechCentral early next week.
Her remarks come as the Competition Commission readies to release a final report flowing from its online intermediation platforms inquiry. Publication of the report has been delayed several times, most recently to the end of July. An earlier draft caused consternation among e-commerce companies, including Takealot.
Mahlare stressed the importance of building a regulatory policy framework that makes it easier for the online retail sector to grow.
In a preliminary July 2022 report, the commission listed several findings regarding “self-preferencing conduct” by Takealot, resulting from its “hybrid platform” business model. It runs both an online marketplace for third-party sellers as well as its own retail division that competes with them.
“The question is: will the outcomes of this report have elements around how we leapfrog in terms of the development of this category to the direct benefit of growing the economy, creating jobs and diversifying economic participation?” Mahlare told TCS.
‘Inclusive’
Matlhare said Takealot’s partnerships with more than 18 000 small businesses support more than 33 000 local jobs via takealot.com, Mr D Food and Superbalist (which hosts over 112 local brands), demonstrates that the Takealot model supports the growth of these businesses, enabling an “inclusive and diverse economy”.
Growing small businesses is “part of the objectives of the Competition Commission”, she added. However, the commission views Takealot’s effect on the market in a different light.
Among other things, it has accused the company of poaching suppliers of successful products away from marketplace sellers and granting Takealot’s own buyers access to marketplace seller data, which they allegedly use to decide on in-house brands to be introduced on its retail storefront.
Read: Free Market Foundation blasts CompCom’s online markets inquiry
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.
Read: Commission launches probe of online markets in South Africa
“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.” — © 2023 NewsCentral Media