Human Rights Day serves as a vital reminder of the hard-won rights for all South Africans. Three decades into our democracy, human rights remain a top priority for our post-apartheid dispensation. For the Competition Commission, protecting a balanced and competitive market not only ensures consumers have greater choice but also that new entrants have less barriers as they grow in an industry.
Fostering this ideal economy – that is inclusive, growing and deconcentrated – cannot be achieved overnight. It is a journey that requires an ideological and economic mindset aimed at creating equality for all, while preserving fundamental human rights.
Consumers often experience the impact of competition regulation only on completion of our immediate work, and sometimes in unexpected ways. From the right to choose where you buy school uniforms and to list your accommodation at a different price on your own website, to opening the doors for generic medication in SA and transparency about pricing on food ordering applications... the commission’s work has paved the way for greater transparency and consumer choice.
As contemplated in the preamble of the Competition Act 89 of 1998 (as amended), the creation of a competitive economic environment must, among other things, “provide for markets in which consumers have access to, and can freely select, the quality and variety of goods and services they desire”.
When a business is transparent about its pricing structures, consumers are empowered to make informed choices. As another way to put this to test, we take a look at one of the remedial actions of the recent Fresh Produce Market Inquiry (FPMI), where retailers are required to display the pricing of relevant fresh produce on 100-gram basis, in addition to any other pricing display they choose.
Already partially implemented by Pick n Pay and Shoprite Checkers in some of their stores, the commission believes this will increase price transparency on fresh produce such as apples, citrus, bananas, pears, table grapes, potatoes, onions, carrots, cabbage, tomatoes and spinach.
Through the Online Intermediation Platforms Market Inquiry (OIPMI), users of food-ordering apps like Mr D Food received a notification alerting them that the app charges each restaurant a commission based on the value of the food ordered through the platform. This pricing transparency contributes to empowering consumers to know exactly where their hard-earned money is going.
As part of the OIPMI, AutoTrader was required to provide verified independent automotive dealers owned or controlled by historically disadvantaged persons, access to workshops and consultations with experts within the online automotive marketplace, AutoTrader. This facilitates a market that fosters the greater participation of historically disadvantaged persons, ultimately offering consumers more choice.
Following our engagement with Johnson & Johnson last year, the pharmaceutical company both renegotiated prices it charged the national department of health as the procurer of TB drug, Bedaquiline, in SA, and agreed not to enforce the Bedaquiline patent in 134 low- and middle-income countries, including SA. Our efforts aided in opening the market allowing for the entry of generic suppliers, translating to lower prices and more choice for consumers.
The commission places immense value on the tangible impact of its work, whether that is a worker now being able to join an employee share ownership programme, an historically disadvantaged service provider able to secure a foothold in a competitive market, or a public school receiving a donation of hygiene, disinfectant, and oral care products as part of a settlement agreement.
This Human Rights Month, we want readers to know that the Competition Commission remains committed to be transparent in its work and will consistently inform consumers of the impact of its work, because an informed consumer is empowered to make decisions that help them play a part in growing an inclusive economy.
* Makunga is spokesperson for the Competition Commission of SA
SIYABULELA MAKUNGA | Strides for transparency, consumer choice
A consumer is empowered to make informed decisions
Image: 123RF/Wavebreakmediamicro
Human Rights Day serves as a vital reminder of the hard-won rights for all South Africans. Three decades into our democracy, human rights remain a top priority for our post-apartheid dispensation. For the Competition Commission, protecting a balanced and competitive market not only ensures consumers have greater choice but also that new entrants have less barriers as they grow in an industry.
Fostering this ideal economy – that is inclusive, growing and deconcentrated – cannot be achieved overnight. It is a journey that requires an ideological and economic mindset aimed at creating equality for all, while preserving fundamental human rights.
Consumers often experience the impact of competition regulation only on completion of our immediate work, and sometimes in unexpected ways. From the right to choose where you buy school uniforms and to list your accommodation at a different price on your own website, to opening the doors for generic medication in SA and transparency about pricing on food ordering applications... the commission’s work has paved the way for greater transparency and consumer choice.
As contemplated in the preamble of the Competition Act 89 of 1998 (as amended), the creation of a competitive economic environment must, among other things, “provide for markets in which consumers have access to, and can freely select, the quality and variety of goods and services they desire”.
When a business is transparent about its pricing structures, consumers are empowered to make informed choices. As another way to put this to test, we take a look at one of the remedial actions of the recent Fresh Produce Market Inquiry (FPMI), where retailers are required to display the pricing of relevant fresh produce on 100-gram basis, in addition to any other pricing display they choose.
Already partially implemented by Pick n Pay and Shoprite Checkers in some of their stores, the commission believes this will increase price transparency on fresh produce such as apples, citrus, bananas, pears, table grapes, potatoes, onions, carrots, cabbage, tomatoes and spinach.
Through the Online Intermediation Platforms Market Inquiry (OIPMI), users of food-ordering apps like Mr D Food received a notification alerting them that the app charges each restaurant a commission based on the value of the food ordered through the platform. This pricing transparency contributes to empowering consumers to know exactly where their hard-earned money is going.
As part of the OIPMI, AutoTrader was required to provide verified independent automotive dealers owned or controlled by historically disadvantaged persons, access to workshops and consultations with experts within the online automotive marketplace, AutoTrader. This facilitates a market that fosters the greater participation of historically disadvantaged persons, ultimately offering consumers more choice.
Following our engagement with Johnson & Johnson last year, the pharmaceutical company both renegotiated prices it charged the national department of health as the procurer of TB drug, Bedaquiline, in SA, and agreed not to enforce the Bedaquiline patent in 134 low- and middle-income countries, including SA. Our efforts aided in opening the market allowing for the entry of generic suppliers, translating to lower prices and more choice for consumers.
The commission places immense value on the tangible impact of its work, whether that is a worker now being able to join an employee share ownership programme, an historically disadvantaged service provider able to secure a foothold in a competitive market, or a public school receiving a donation of hygiene, disinfectant, and oral care products as part of a settlement agreement.
This Human Rights Month, we want readers to know that the Competition Commission remains committed to be transparent in its work and will consistently inform consumers of the impact of its work, because an informed consumer is empowered to make decisions that help them play a part in growing an inclusive economy.
* Makunga is spokesperson for the Competition Commission of SA
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