EDITORIAL: Competition watchdog should be careful of meddling
16 December 2021 - 05:00
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Competition Commissioner Tembinkosi Bonakele announced a lower cost for users of the PCR tests. Picture: Freddy Mavunda
The Competition Commission’s intervention to ensure the cost of PCR tests is kept to below R500 is welcome. Many countries have intervened to ensure that companies don’t exploit the unusual market circumstances created by Covid to make unreasonable profits. It would also appear to be more justifiable where there are just a few providers of an essential service, like PCR tests.
Yet this victory shouldn’t cause the commission to overreach into trying to control prices in areas where it has no place intervening. This would appear to be a real danger, given the commission’s new report, titled "Measuring Concentration and Participation in the SA Economy".
In a document that flags everything from SA’s banks to airlines, the report seeks to justify meddling in industries that aren’t the root of SA’s ills. It seems to be a thinly veiled attempt to impose the state’s barely credible will on the private sector, with zero recognition that the problem is the public sector.
What SA needs is a commission that begins to probe how bungling municipalities, and their offshoots like Joburg’s City Power, are able to pass unreasonable increases only thanks to their unfair monopoly. Now that would make a difference.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
EDITORIAL: Competition watchdog should be careful of meddling
The Competition Commission’s intervention to ensure the cost of PCR tests is kept to below R500 is welcome. Many countries have intervened to ensure that companies don’t exploit the unusual market circumstances created by Covid to make unreasonable profits. It would also appear to be more justifiable where there are just a few providers of an essential service, like PCR tests.
Yet this victory shouldn’t cause the commission to overreach into trying to control prices in areas where it has no place intervening. This would appear to be a real danger, given the commission’s new report, titled "Measuring Concentration and Participation in the SA Economy".
In a document that flags everything from SA’s banks to airlines, the report seeks to justify meddling in industries that aren’t the root of SA’s ills. It seems to be a thinly veiled attempt to impose the state’s barely credible will on the private sector, with zero recognition that the problem is the public sector.
What SA needs is a commission that begins to probe how bungling municipalities, and their offshoots like Joburg’s City Power, are able to pass unreasonable increases only thanks to their unfair monopoly. Now that would make a difference.
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Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.