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South Africa’s competition watchdog takes aim at Google 🇿🇦

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A report by South Africa’s Competition Commission alleges that Google and some other large tech companies are anti-competitive and making growth difficult for small local businesses. The commission wants Google to tailor some of its products to promote the local businesses and then invest up to $17.3 million in them. Experts say the commission is putting the country’s burgeoning digital economy at risk.

South Africa's Competition Commission has released a report alleging that Google and other large tech companies engage in anti-competitive behavior, which hampers the growth of local small businesses. The commission suggests that Google should modify its products to promote local businesses and invest up to $17.3 million in them. The commission's recommendations include introducing a South African badge and search filter, displaying smaller local platforms in relevant searches, and providing support programs and advertising credits.


Some experts argue that the commission's demands might harm the country's digital economy rather than benefit it. They question whether regulation is necessary or if the commission's actions are anti-market. Opinions are divided on whether Google's practices truly require intervention or if they fall within acceptable market principles.


The report emphasizes that Google's practices disadvantage smaller, underfunded South African businesses by directly competing with their services and favoring its offerings over theirs. The commission's recommendations seek to level the playing field for local businesses.


While Google has not directly responded to the commission's recommendations, it has indicated its commitment to generating visits to South African sites and businesses. The company is currently reviewing the final report.


Industry experts and analysts are concerned that the recommended measures might be burdensome for Google and potentially lead to discontinuation of certain offerings, affecting South African consumers.


Legal experts highlight that the commission's remediations are binding for concerned companies. Non-compliance could result in penalties of up to 10% of a company's annual turnover generated in South Africa. It is anticipated that Google might contest the recommendations.


There is a concern that if other jurisdictions on the continent adopt a similar approach, international companies like Google might reduce or cease their operations in these markets due to perceived barriers.


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