Clarifying Allegations: The True Performance of South Africa's Competition Commission

The Competition Commission of South Africa has recently addressed critiques presented in a Sunday Times article, asserting an unbalanced representation of its activities and the role of commissioner Doris Tshepe. The commission specifically refutes claims of underperformance and negligence, providing a detailed account of its accomplishments to highlight its effectiveness and ongoing commitment to promoting fair competition in various economic sectors.

Notably, the commission's decisive actions in 2023 have led to substantial contributions to market fairness and consumer welfare. One significant intervention involved Johnson & Johnson's (J&J) operations concerning a monopoly drug for treating multi-drug-resistant tuberculosis, a major health concern in South Africa. The commission's investigation prompted J&J to relinquish its secondary patent, allowing generic manufacturers to enter the market and reducing the drug price by approximately 40%, thereby offering considerable savings to the national fiscus.

Moreover, the commission completed its inaugural market inquiry into digital platforms in July 2023, revealing exclusive practices affecting small distributors in townships. As a result of the inquiry, major platforms like Google and Booking.com agreed to amend their policies, which is projected to enhance market access for South African entities and is estimated to value R1.1 billion in consumer and small business benefits.

On the mergers front, from September 2022, the commission has effectively overseen more than 560 mergers, including complex cases, and recommended prohibitions that were upheld by the Competition Tribunal. These interventions provided about R2.2 billion in support to firms owned by historically disadvantaged individuals and secured assets worth R37 billion for workers through employee-shareholder schemes. Additionally, an estimated 11,000 jobs were preserved through these strategic activities.

Contrary to claims of low staff morale within the commission, the reality presented showcases a motivated and highly professional team operating under stringent budget conditions, achieving an impressive 93% of their performance target in the 2023-24 financial year and maintaining high performance into the next.

Concerning internal and operational transparency, the commission has been meticulous. It addressed allegations relating to conflicts of interest involving the commissioner’s partner, advocate Ngwako Maenetje, clarifying that his involvement in ongoing cases originated before Commissioner Tshepe's appointment and confirming that Tshepe has recused herself from related decision-making processes. Regarding the timely submission of financial reports, the commission has maintained a record of compliance and transparency, evidenced by consecutive clean audits up to and including the financial year 2023-24, disproving any allegations of administrative lapses.

The Competition Commission remains committed to fostering a competitive market landscape in South Africa, encouraging economic inclusion, and positioning the nation advantageously within global economic debates and practices, especially concerning digital market dynamics and cross-border transactions. Despite facing criticism, the commission continues to uphold a high standard of integrity and performance, significantly contributing to the national and global economic dialogue.