Commissioner Tembinkosi Bonakele reflects on 2020 & looks ahead to 2021

The South African Competition Commission has had a busy year in 2020, with a particular focus on containing price gouging on essential items needed during the COVID-19 pandemic. Celebrating World Competition Day, Commissioner Tembinkosi Bonakele highlighted the importance of competition policy in various markets, specifically focusing on access to healthcare. The Commission conducted a market study into the private healthcare sector, revealing issues with pricing and the need for tightened regulation. With 84% of the population relying on the public sector for healthcare, while the remaining 16% on the private sector, there is a significant discrepancy in contributions to the GDP. To address this gap, the Commission is advocating for transparency in pricing, regulation of prices, and broader accessibility through basic medical schemes. Many of these interventions are in progress, with some long-term strategies aligning with the implementation of the National Health Insurance (NHI). In response to COVID-19 disruptions, the Commission dealt with over 600 cases related to the pandemic in 2020. While most of these cases were consumer complaints that were swiftly resolved, about 30 to 35 cases required further intervention and were often settled. One notable case that went through the appeal process was won by the Commission, affirming their role in curbing price hikes caused by abuse of dominance during crises. Commissioner Bonakele highlighted opportunistic behavior in the market, particularly in the supply of PPE, with some vendors engaging in shocking levels of profiteering. Instances of price escalations, such as an 800% increase, were indicative of unethical business practices that took advantage of the pandemic situation. Looking ahead to 2021, the Commission aims to focus on digital markets as a key area of regulation. With plans to strengthen regulations and retool themselves to address the challenges posed by digital markets, the Commission is gearing up for a new set of challenges in the upcoming year. Despite the distractions brought about by the pandemic, Commissioner Bonakele assured that the Commission remains committed to implementing necessary interventions and addressing issues of market dominance and unethical practices. In conclusion, the South African Competition Commission's reflection on 2020 shows a year filled with challenges and critical interventions in response to the COVID-19 pandemic. As they look forward to 2021, the Commission is poised to tackle emerging issues in digital markets and continue their efforts to promote fair competition and accessibility in various sectors.