The Competition Commission’s inquiry into e-commerce in South Africa wants Google to change how it displays its search results, and it is also proposing stricter rules for online sellers. | Fin24
Subscribers can listen to this articleThe Competition Commission’s inquiry into e-commerce in South Africa wants Google to change how it displays its search results.The inquiry also recommends stricter rules for online sellers and food delivery platforms.
Apple App Store, Google Play Store, Takealot, Booking.com, Airbnb, Mr Delivery, Uber Eats, Property24, Private Property, AutoTrader, and Cars.co.za, along with Google, were investigated by the inquiry.Google must label paid-for search results, which are currently being displayed at the top of its search results pages, as advertising. It must use borders and shading to make clear to consumers that the search results were paid for.
The commission is also"exploring" whether the default position of Google Search on mobile devices should end in South Africa. The inquiry recommends that large estate agencies sell their stake in the property platform Private Property."In property classifieds and food delivery, new entrants and local delivery platforms face challenges signing up large national businesses, undermining their ability to compete. The inquiry provisionally finds in property classifieds this is a result of the investment and support of large estate agencies in Private Property and recommends the divesture of their stake.
The inquiry found that South Africa’s digital economy is far less transformed than many traditional industries. It wants all leading platforms to provide businesses owned by historically disadvantaged people with personalised onboarding, a waiver on onboarding costs and fees, free promotional credits, fees that are no higher than the best placed, and the opportunity for consumers to discover these businesses on the platform.
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