Larry Claasen
4 minute read
19 Oct 2020
9:14 am

CompCom’s big fear

Larry Claasen

The commission insists that digital economy needs to be better understood by regulators.

The Competition Commission’s (CompCom’s) recently-released discussion paper on the digital economy in South Africa highlights issues around why this sector must be regulated. The ‘Competition in the Digital Economy’ paper points out that if the country does not set up a regulatory framework, it could soon find itself trying to govern companies that have quickly amassed a lot of power in a market. The paper notes that this is likely, as digital markets are prone to extreme ‘winner takes all’ outcomes that sees companies like Google, Facebook and Alibaba dominate their respective local markets and around the globe. It warns...