The Competition Commission has ordered Takealot to make substantial changes to its operations and website in its Online Intermediation Platforms Market Inquiry report.
Takealot must make significant changes to its website and operations to address market distortions caused by its dominance in South Africa, the Competition Commission has ordered.
The inquiry found that smaller businesses wishing to trade on online marketplaces in South Africa are highly dependent on Takealot., the inquiry found Takealot imposes “narrow price parity” on sellers, blocking them from offering lower prices on their own websites. According to the commission, this creates a conflict of interest in the same way as Google, which it also imposed restrictions on.
Among these is that onboarding favours established businesses along with other promotional features, the report stated.Takealot must remove its “narrow price parity” clause from its contracts.It must prevent its retail services from accessing seller data.Takealot must introduce a 60-day dispute resolution process for marketplace seller complaints on returns and stock loss, which will be deemed resolved in the seller’s favour if not resolved within 60 days.
“Whilst it has not entered South Africa, were it or any other large e-commerce player to do so, they will similarly be expected to comply with similar provisions as set out for Takealot.”
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