EDITORIAL: Barking up the wrong tree
Discovery vs Afrocentric reflects core issues policy makers should consider when using instruments of competition regulation in 'radical socioeconomic transformation'
A rather odd case came before the Competition Tribunal last week, in which one medical scheme essentially accused another of undercutting it on price. One might think that this is precisely what competition is all about. Those who can provide the best service to customers, at the cheapest rates, should be the ones who gain market share and prosper at the expense of their competitors, who should, in turn, be forced to raise their game if they want to remain competitive. That dynamic should drive efficiencies and innovation across the whole market. The more that happens, across a variety of markets, the better it will be for the productivity and growth potential of the economy as a whole. That’s really why we have competition regulation at all, even though SA’s competition watchdogs are also tasked with keeping an eye on public interest concerns such as employment and empowerment. Of course, the case in which Discovery Health Medical Scheme asked the Competition Commission to dismiss ...
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