The digitalisation of the economy and the dominance of a few large platforms providing digital services have significant implications for South Africa’s growth and development trajectory. The rise of digital intermediation platforms, particularly in e-commerce, has transformed traditional retail and services sectors. These changes impact consumers—through access, pricing, and variety—and entire value chains.  In South Africa, local digital platforms are emerging to compete with Big Tech.  Ensuring that start-ups and SMEs, which might compete with or rely on large digital platforms, operate without undue constraints imposed by incumbents is critical. Furthermore, the competitive dynamics of these platforms have implications for international trade and foreign investment policies.  From a development perspective, the impact of platform competition on labour markets and inequality is a growing area of concern.

Globally, policymakers have recognised the opportunities and risks associated with digital platforms.  The European Union, through legislation like the Digital Markets Act, is leading efforts to regulate competition in the digital economy.  In South Africa, interest in these issues has grown, as evidenced by two market inquiries by the Competition Commission on digital platform markets. In response, Economic Research Southern Africa (ERSA) has launched a research initiative focused on the economics of digital platform competition in South Africa and the relevant competition policy and regulatory responses.  This project aims to build a robust body of evidence-based research to guide South African policymakers in this rapidly evolving field.

This Request for Proposals follows input from an ERSA Policy Roundtable held in Pretoria in late 2024, where experts from South African universities and the Competition Commission identified key themes and questions in digital competition policy and regulation. To learn more about this, see the Request for Proposals below.