Abuse of dominance and the Internet : an assessment of the South African Regulatory Framework

Date
2021-12
Journal Title
Journal ISSN
Volume Title
Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT: While electronic commerce in South Africa is still comparatively small, it is growing rapidly. The advent of the internet has potentially fundamental impacts on business and the law both locally and internationally. It is submitted the free competition on the internet is important and will continue to be so in the future. The research in this thesis relates to the rise of so-called internet monopolies (such as Google, Facebook and Amazon) and its implications for competition law enforcement. A particularly problematic aspect of the products provided by some of these companies is that their products and services are ostensibly free to consumers. This thesis examines whether the traditional model for the regulating abuse of dominance would be effective in the instance where such an internet monopoly is charged with a contravention under South African competition law. The research and analysis in the thesis are effectively divided into three parts. The first considers whether abuse of dominance related to the internet deserves closer analysis and also assesses the purposes of competition law and how these are changing (or should change) in the light of new technology and markets. The second part deals with abuse of dominance both generally and specifically in relation to the internet. In this context, the thesis considers how harms may manifest and how dominance may be determined in the context of the internet. The final part considers specific issues that may be problematic in light of the internet. The interrelationship between intellectual property and competition law is analysed, along with aspects pertaining to the assertion of jurisdiction, the nature of competition law enforcement and the extent to which different jurisdictions may (and/or should) cooperate in dealing with abuse of dominance on the internet. The thesis submits that the South African legislative framework for regulating abuse of dominance on the internet is broadly fit for purpose, but that there is a need for developing new approaches and policy within that framework. It contributes to the existing body of knowledge and discourse by providing a comprehensive overview of the regulatory framework in South Africa, informed by comparative analysis; by applying this in a new context (hitherto under-researched in the South African context), and by offering concrete suggestions to frame policy and approach.
AFRIKAANSE OPSOMMING: Terwyl elektroniese handel in Suid-Afrika steeds relatief nuut is, is dit besig om snel te groei. Die internet het in potentia ‘n fundamentele impak op sowel besighede as die reg, nie net in Suid-Afrika nie, maar wêreldwyd. Dit word gestel dat vrye mededinging op die internet belangrik is, en ook oor tyd belangriker sal word. Die navorsing in hierdie tesis het te make met die totstandkoming van sogenaamde internet- monopoliëe (soos Google, Facebook en Amazon) en die implikasies van sulke firmas vir die handhawing van die mededingingsreg. Wat veral problematies is, is die feit dat bepaalde produkte en dienste van party van hierdie firmas op die oog af gratis is aan verbruikers. Hierdie tesis ondersoek dan of die tradisionele model van die regulasie van misbruik van markoorheersing doeltreffend sou wees in gevalle waar ‘n internet- monopolie sou aangekla word van ‘n anti-mededingende praktyke in terme van Suid- Afrikaanse mededingingsreg. Die navorsing en analise in hierdie tesis is effektief verdeel in drie dele. Die eerste deel oorweeg of dit wenslik is om misbruik van markoorheersing met betrekking tot die internet te reguleer, en beoordeel ook die doelwitte van mededingingsreg en hoe dit verander (of behoort te verander) in die lig van nuwe tegnologie en markte. Die tweede deel kyk dan na misbruik van markoorheersing in die algemeen en in die spesifieke met verwysing na die internet. In hierdie konteks word daar gekyk na hoe nadelige effekte en oorheersing op die internet identifiseer kan word. Die laaste deel kyk na spesifieke kwessies wat potensieel problematies mag wees in die konteks van die internet. Die wisselwerking tussen mededingsreg en immaterïele goederereg word geanaliseer, tesame met aspekte verwant aan die afdwinging van jurisdiksie, die aard van mededingsregtelike toepassingstelsels, en die mate waartoe verskillende jurisdiksies mag (en/of hoort) saamwerk ten einde misbruike van dominansie op die internet te hanteer. Die tesis stel dat die Suid-Afrikaanse wetsraamwerk gepas is vir die regulering van misbruik van markoorheersing met betrekking tot die internet, maar stel dat daar wel ‘n behoefte is vir die ontwikkeling van nuwe benaderings en beleide binne daardie raamwerk. Die tesis lewer ‘n bydrae tot die bestaande kennis en diskoers deur ‘n omvattende oorsig te gee van die regulatoriese raamwerk in Suid-Afrika, soos ingelig deur komparatiewe analise en dan hierdie toe te pas in ‘n nuwe konteks (wat tot op hede onbehoorlik nagevors is in die Suid-Afrikaanse konteks), en dan daadwerklike voorstelle te bied vir die beraming van nuwe beleidsoorwegings en benaderinge.
Description
Thesis (LLD)--Stellenbosch University, 2021.
Keywords
Electronic commerce, Competition law, South African competition law, South African legislative framework, Internet monopolies, UCTD
Citation