The Competition Commission has imposed numerous strict conditions on Takealot, hampering its ability to compete against international players like Shein and Amazon.
The Competition Commission’s Online Intermediation Platforms Market Inquiry Report found that Takealot is the eCommerce market leader with a dominant share of overall online sales.
It must introduce a 60-day dispute resolution process for marketplace sellers’ complaints on returns and stock loss.The Competition Commission further found that the eCommerce business model restricts historically disadvantaged businesses from effectively competing in the market.
The glaring omission is that Takealot is not making large profits, as is the case with most dominant players and monopolies. However, its biggest competitors are international companies like Amazon and Shein. They ship directly to South Africans and bypass many local requirements and taxes.Former Naspers CEO Bob van Dijk said the Competition Commission demands would constrain businesses like Takealot, which have grown locally and positively impacted the local economy.
He added that Amazon has a thousand times more financial muscle than Takealot, which gives it a considerable advantage. He said successful eCommerce companies are essentially punished for being successful and for growing and diversifying.
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