A company which has a 35% interest in GovChat has welcomed the Competition Commission’s decision to refer Facebook and WhatsApp to the Competition Tribunal for prosecution for alleged abuse of dominance.
In its decision announced in Monday, the commission also recommended that the tribunal impose a maximum penalty of 10% of the collective turnover of Facebook, now known as Meta Platforms Inc, and its subsidiaries WhatsApp and Facebook SA.
In addition, the commission asked the tribunal to interdict Facebook/WhatsApp from off-boarding (removing) GovChat from the WhatsApp Business Application Programming Interface (API).
The decision by the commission relates to a complaint by GovChat in November 2020 when Facebook wished to terminate GovChat’s access to the WhatsApp Business API.
The commission itself initiated a further complaint against Facebook in October last year, alleging that certain terms and conditions imposed by Facebook on GovChat and others operating on the WhatsApp Business API amounted to anti-competitive conduct.
Capital Appreciation Limited (Capprec) praised the decision by the commission and said it was an important step to protect a vital citizen-engagement service to the government. It said it was also an important and decisive action by the commission to promote fair business practices and to ensure improved service delivery and active citizenry.
GovChat, a black-controlled technology start-up business, developed a national citizen engagement platform for South Africans to communicate with all divisions of government.
Capprec said GovChat has, among others, enabled millions of South Africans to digitally apply for Sassa's social relief of distress grants.
In all of these applications, GovChat relies on the WhatsApp Business API to provide these services.
GovChat chair Michael Sacks said it was clear from engagement statistics that GovChat delivered a vital service to both the government and citizens.
“It would have been a travesty if such a service was to be terminated through WhatsApp’s intimidatory tactics and anticompetitive behaviour. Capprec fully supports GovChat in its efforts to fight this restrictive conduct,” said Sacks, who is also chair of Capprec.
In its reaction on Tuesday, WhatsApp said GovChat had refused to comply with its policies designed to protect citizens and their information. Instead, WhatsApp said, GovChat has prioritised its own commercial interests over the public.
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GovChat welcomes referral of Facebook to Competition Tribunal
Image: REUTERS/Dado Ruvic/Illustration
A company which has a 35% interest in GovChat has welcomed the Competition Commission’s decision to refer Facebook and WhatsApp to the Competition Tribunal for prosecution for alleged abuse of dominance.
In its decision announced in Monday, the commission also recommended that the tribunal impose a maximum penalty of 10% of the collective turnover of Facebook, now known as Meta Platforms Inc, and its subsidiaries WhatsApp and Facebook SA.
In addition, the commission asked the tribunal to interdict Facebook/WhatsApp from off-boarding (removing) GovChat from the WhatsApp Business Application Programming Interface (API).
The decision by the commission relates to a complaint by GovChat in November 2020 when Facebook wished to terminate GovChat’s access to the WhatsApp Business API.
The commission itself initiated a further complaint against Facebook in October last year, alleging that certain terms and conditions imposed by Facebook on GovChat and others operating on the WhatsApp Business API amounted to anti-competitive conduct.
Capital Appreciation Limited (Capprec) praised the decision by the commission and said it was an important step to protect a vital citizen-engagement service to the government. It said it was also an important and decisive action by the commission to promote fair business practices and to ensure improved service delivery and active citizenry.
GovChat, a black-controlled technology start-up business, developed a national citizen engagement platform for South Africans to communicate with all divisions of government.
Capprec said GovChat has, among others, enabled millions of South Africans to digitally apply for Sassa's social relief of distress grants.
In all of these applications, GovChat relies on the WhatsApp Business API to provide these services.
GovChat chair Michael Sacks said it was clear from engagement statistics that GovChat delivered a vital service to both the government and citizens.
“It would have been a travesty if such a service was to be terminated through WhatsApp’s intimidatory tactics and anticompetitive behaviour. Capprec fully supports GovChat in its efforts to fight this restrictive conduct,” said Sacks, who is also chair of Capprec.
In its reaction on Tuesday, WhatsApp said GovChat had refused to comply with its policies designed to protect citizens and their information. Instead, WhatsApp said, GovChat has prioritised its own commercial interests over the public.
TimesLIVE
Support independent journalism by subscribing to the Sunday Times. Just R20 for the first month.
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