152 No. 50741
GOVERNMENT GAZETTE, 31 May 2024
competition concerns can occur when there is deliberate collusion to exclude other
competitors and new entrants.
Competition issues in the digital environment are particularly complex because companies
can have a footprint in multiple jurisdictions without a physical presence. Therefore, further
research is necessary to understand potential anti-competitive practices in the data and cloud
market. Adequate capacity must be created to investigate these practices and implement
appropriate measures to combat anti-competitive behaviour.
South Africa has a competition regulator, the Competition Commission, which has the
capacity and competence to regulate competition issues in every sector. The Competition
Commission has already undertaken merger and acquisition activity in the data centre market
and initiated market inquiries to examine competition issues in digital markets. They have
also implemented censures where anti-competitive behaviour by e-commerce and digital
platforms was found to transgress competition rules. Thus, there is no empirical evidence
necessitating a digital regulator focused solely on competition issues in the digital space.
Policy Interventions
15.6.1.
The Competition Commission shall consider reviewing and potentially
augmenting the Competition Act in relation to the data and cloud market, where
empirical evidence indicates that the current law is inadequate to address
competition issues in these markets.
15.6.2.
The Competition Commission shall conduct studies in the data centre and cloud
services markets to identify potential anti-competitive trends and behaviour, and
where applicable, identify proactive preventative measures to ensure a fair and
competitive market.
15.6.3.
Cloud service providers shall ensure transparency regarding data portability and
interoperability costs and technical implications at the point of contracting, to help
customers to make informed decisions and promote fair competition.
15.6.4.
Competition among data and cloud service providers shall be encouraged to
foster competitive and innovative offerings, as well as to potentially reduce costs
for consumers.
15.6.5.
Different architectures and operating systems shall be supported to provide a
variety of options for the public, ensuring that consumers have access to diverse
and suitable technological solutions.
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