The report on a massive investigation into the Online Intermediation Platforms Market Inquiry (OIPMI) has been extended by the Minister of Trade, Industry and Competition, Ebrahim Patel.
The OIPMI was looking into established online platforms in South Africa such as Takealot, UberEats, Google Play Store and others.
The minister, this past week, extended the investigation by a period of 3 months, from 18 November 2022 to 18 February 2023.
The purpose of the extension was to give the commission more time to look at the stakeholder feedback from the preliminary findings which was published in July earlier this year.
The Competition Commission launched a probe into competition and participation in the online economy in 2021 of the country.
The probe focused on the below platforms:
- Apple App Store;
- Google Play Store;
- Takealot;
- Booking.com;
- Airbnb;
- Mr Delivery;
- Uber Eats;
- Property24;
- Private Property;
- AutoTrader;
- Cars.co.za;
- Google Search.
From the preliminary report in July, by the Competition Commission, stemming from the OIPMI, noted specific non-competitive behaviour in the sector.
The Commission noted the below on the matter:
- Payment options for goods
- Pricing of items
- What comes up when a consumer searches for it on the internet
The commission further found that there was a lack of effective competition in fees charged by app developers leading to high app prices, most accommodation and food delivery services offer same prices and how the market appears to to be against new entrants as dominant businesses pump money behind a service.
The Commission further stated that the below needed reviewing and change in SA in the online economy:
- Search rankings
- Fee discrimination
- Online stores
- App stores
MyBroadBand reported that online retail giant Takealot, said that the criticism from the commission was based on weak evidence and even called the findings defamatory.
Earlier this year in September, Takealot found itself in hot water with authorities over safety issues and the hiring of undocumented foreign nationals.
The Department of Employment and Labour took the online giant to task over health and safety issues and also for the hiring of undocumented foreign nationals.
In September, the department said it issued three notices for non-compliance with Occupational Health and Safety regulation to Takealot in Gauteng.
The department granted Takealot a period of 60 days from the date of the served notice to get its house in order.
The department said Takealot was found to be in contravention of the following regulations in terms of the OHS Act: Ergonomics regulations, pressure equipment regulations, general administration regulations, hazardous chemical agent regulations, driven machinery regulations and general safety regulations.
The online retailer’s management was also served with a notice direction to improve the company’s clinic facilities, create demarcated drive ways inside the warehouse and improve the company’s warehouse risk assessment specification.
Takealot was also issued with three prohibition notices that prevented them from: allowing contractors on-site with step-ladders without non-skid rubber, storing of chemicals in a general storing area or racks in that they are flammable and can have an adverse effect to the health and safety of employees, and deducting monies from employees for provision of protective safety shoes, it said.
Takealot responded to Business Report’s query on the matter in September.
The ecommerce giant said in a statement sent to Business Report, “Takealot is fully committed to complying with all laws and providing a safe working environment for all staff. We are aware of the notices issued by the Department of Employment and Labour in relation to the Occupational Health and Safety Act 85 of 1993, and Takealot will work to comply with the Department’s requirement for remedial action to be taken within the next 60 days.”
The company went on to state, “However, we are unaware of any contravention or non-compliance related to the Unemployment Insurance Fund Act, Compensation for Occupational Injuries and Diseases Act, the Basic Conditions of Employment Act as alleged by the Department. Takealot applies stringent procedures with regards to the verification of staff identification and qualifications. We also adhere to the industry standard of conducting background and criminal checks on permanent and semi-permanent hires. Takealot would not knowingly employ anyone who is undocumented or who has provided fake documents.”
Takealot further stated that it is committed to being a responsible corporate citizen and will address any alleged gaps.
BUSINESS REPORT