The Competition Commission is reviewing the submissions it has received in response to its proposed competitive strategy for South Africa’s digital economy in the future.

The draft paper on Competition in the Digital Economy was published in September for public comment before October 30, offering a strategy that embraces a proactive approach that adjusts to rapidly changing conditions, says Competition Commissioner Tembinkosi Bonakele.

“The next step is to assess the submissions and have further engagements with key stakeholders before finalising the final report,” he continues, noting that the final report will outline the way forward for the market.

Bonakele comments that the main question to be grappled with is whether South Africa is going to wait for related regulations to take hold in some parts of the world or take its own lead to avoid entrenching market leaders further.

“The question is no longer about whether to regulate or not, but rather how to regulate. Competition regulation in the digital economy is now inevitable.”

The ‘Competition in the Digital Economy’ report provides a review of the emerging competition issues in ecommerce, consumer empowerment and guides businesses on the commission’s approach.

It takes aim at merger controls, cartel conduct and abuse of dominance and vertical restraints, as well as takes a closer look at the leading digital disrupters and their impact on established industries and companies, including Amazon, Netflix, Airbnb and Uber.

“I have an anxiety that we might be caught unaware of the undertakings and understandings that firms may enter into,” he says.

“We intend to pursue strategic action for enforcement, including mapping the digital access landscape of South Africa to inform proactive initiation of cases and the proactive investigation of conduct by dominant online platforms which may be excluding rivals and entrenching dominance.

“We will issue guidelines as appropriate which will regulate the conduct of dominant firms. We will institute scoping studies, impact assessment studies and market inquiries into the digital markets, as well as cooperate with our international counterparts,” Bonakele explains.