IDEAS home Printed from https://ideas.repec.org/p/rza/ersawp/379.html

Data as the New Currency? Excessive Data Collection and Leveraging as Non-Price Abuses of Dominance in South Africa's Digital Economy

Author

Listed:
  • Kuhle Majola

    (Competition Commission)

  • Tinashe Kondo

    (University of the Western Cape)

Abstract

The rise of the internet has brought with it significant complexities, even for the economy. Not only do we have physical brick and mortar markets, but we also now have digital markets. Digital markets present a significant challenge to competition law. This is because, for instance, dominant firms can extract significant value from users, not through monetary prices, but via the collection and downstream use of personal data. This notwithstanding, to date, the South African abuse of dominance framework has not yet extended its price-centric and foreclosure-based analytical tools to data as a competitive input, which leaves unresolved the question as to how data-driven harms should be addressed under the existing doctrine. Accordingly, this paper aims at responding to this challenge by considering specifically how excessive data leveraging and excessive data collection as non-price-based abuses of dominance are dealt with under the Competition Act 89 of 1998. Methodologically, the paper analyses the existing framework with respect to abuse of dominance and considers digital relevant proceedings such as market inquiries to determine how data collection and data aggregation have been dealt with by South African competition authorities. More importantly, the paper also draws comparative insights from the Indian and German jurisdictions which serve as a contextual benchmark. As part of its findings, the paper observes that there is currently no need for legislative amendments to accommodate non-price-based harms. Rather, what is needed is an evolution in the interpretive approach. Herein, data is recognised as a non-monetary form of consideration and a strategic competitive input.

Suggested Citation

  • Kuhle Majola & Tinashe Kondo, 2026. "Data as the New Currency? Excessive Data Collection and Leveraging as Non-Price Abuses of Dominance in South Africa's Digital Economy," ERSA Working Paper Series 379, Economic Research Southern Africa.
  • Handle: RePEc:rza:ersawp:379
    as

    Download full text from publisher

    File URL: https://ersawps.org/index.php/working-paper-series/article/view/379/219
    File Function: First version, 2026
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    2. Haftor, Darek M. & Costa-Climent, Ricardo & Ribeiro Navarrete, Samuel, 2023. "A pathway to bypassing market entry barriers from data network effects: A case study of a start-up’s use of machine learning," Journal of Business Research, Elsevier, vol. 168(C).
    3. Wendy C.Y. Li & Makoto Nirei & Kazufumi Yamana, 2018. "Value of Data: There’s No Such Thing as a Free Lunch in the Digital Economy," BEA Working Papers 0164, Bureau of Economic Analysis.
    4. Just, Natascha, 2026. "Beyond price and money: From early insights to contemporary theorizing of non-price competition and non-monetary exchange in Internet markets," Telecommunications Policy, Elsevier, vol. 50(4).
    5. Tone Knapstad, 2024. "Digital dominance: assessing market definition and market power for online platforms under Article 102 TFEU," European Competition Journal, Taylor & Francis Journals, vol. 20(2), pages 412-436, May.
    6. Costa-Cabral, Francisco & Lynskey, Orla, 2017. "Family ties: the intersection between data protection and competition in EU Law," LSE Research Online Documents on Economics 68470, London School of Economics and Political Science, LSE Library.
    7. Krafft, Manfred & Kumar, V. & Harmeling, Colleen & Singh, Siddharth & Zhu, Ting & Chen, Jialie & Duncan, Tom & Fortin, Whitney & Rosa, Erin, 2021. "Insight is power: Understanding the terms of the consumer-firm data exchange," Journal of Retailing, Elsevier, vol. 97(1), pages 133-149.
    8. van de Waerdt, Peter J., 2025. "Reinforcing data protection and competition through art. 6(2) of the Digital Markets Act," International Review of Law and Economics, Elsevier, vol. 82(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oliver Falck & Johannes Koenen, 2020. "Rohstoff „Daten“: Volkswirtschaflicher Nutzen von Datenbereitstellung – eine Bestandsaufnahme," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 113, February.
    2. Teck Ming Tan & Saila Saraniemi, 2023. "Trust in blockchain-enabled exchanges: Future directions in blockchain marketing," Journal of the Academy of Marketing Science, Springer, vol. 51(4), pages 914-939, July.
    3. Xiao, Shengpeng & Wu, Kedong & Xiao, Xiao & Lin, Changqing, 2025. "How do data assets affect firm investment?," International Review of Financial Analysis, Elsevier, vol. 106(C).
    4. Zhan, Yuanzhu & Kumar, Ajay & Hosany, Sameer & Xia, Yusen & Schoenherr, Tobias & Xia, Lan, 2025. "Market competition in the platform economy: new insights, integrative framework and research agenda," Journal of Business Research, Elsevier, vol. 200(C).
    5. Agag, Gomaa & Eid, Riyad & Chaib Lababdi, Houyem & Abdelwahab, Mohamed & Aboul-Dahab, Sameh & Abdo, Said Shabban, 2024. "Understanding the impact of national culture differences on customers’ online social shopping behaviours," Journal of Retailing and Consumer Services, Elsevier, vol. 79(C).
    6. Muhammad Aslam & Bilal Ahmad & Tuba Rasheed, 2025. "Navigating the Impact of Green Innovation, Technological Linkages, and Knowledge Management on Sustainable Performance of SMEs," Journal of International Entrepreneurship, Springer, vol. 23(3), pages 593-618, September.
    7. Fiza Amjad & Yulei Rao & Amin Ur Rahman & Sajjad Ahmad Baig & Muhammad Usman & Muhammad Waleed Younas, 2026. "Innovative Strategies for SMEs’ Sustainability: Crowdfunding, Industry 4.0, and Sustainable Business Models Using SEM-ANN Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 3490-3521, April.
    8. Pallant, Jason I. & Pallant, Jessica L. & Sands, Sean J. & Ferraro, Carla R. & Afifi, Eslam, 2022. "When and how consumers are willing to exchange data with retailers: An exploratory segmentation," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    9. Urbonavicius, Sigitas, 2023. "Relative power of online buyers in regard to a store: How it encourages them to disclose their personal data?," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    10. Beenish Amir & Saba Fazal Firdousi & Ayesha Afzal, 2025. "Multiplayer Strategic Evolutionary Game Model Analysis on the Ban of Single-use Plastic Bags Under the Pakistan Environmental Protection Act 2019," SAGE Open, , vol. 15(1), pages 21582440251, March.
    11. Wolfgang Kerber & Karsten K. Zolna, 2021. "The German Facebook Case: The Law and Economics of the Relationship between Competition and Data Protection Law," MAGKS Papers on Economics 202114, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    12. Oliver Falck & Johannes Koenen, 2020. "Resource “Data”: Economic Benefits of Data Provision," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 21(03), pages 31-41, September.
    13. Alexander Oluka, 2024. "The impact of digital platforms on traditional market structures," Technology audit and production reserves, PC TECHNOLOGY CENTER, vol. 2(4(76)), pages 21-29, April.
    14. Lin Wu & Jimmy Huang & Miao Wang & Ajay Kumar, 2024. "Unleashing supply chain agility : Leveraging data network effects for digital transformation," Post-Print hal-04850421, HAL.
    15. Fu, Yu & Chen, Yijun & Zhang, Yulin & Wang, Menghan & Yu, Yuanchun, 2026. "Corporate productivity transformation under the innovation paradigm: The role and impact of artificial intelligence," Technology in Society, Elsevier, vol. 84(C).
    16. José Bayoán Santiago Calderón & Dylan G. Rassier, 2023. "Valuing the US Data Economy Using Machine Learning and Online Job Postings," NBER Chapters, in: Technology, Productivity, and Economic Growth, pages 245-284, National Bureau of Economic Research, Inc.
    17. Peter R. J. Trim & Yang-Im Lee & An Vu, 2023. "Insights into How Vietnamese Retailers Utilize Social Media to Facilitate Knowledge Creation through the Process of Value Co-Creation," Future Internet, MDPI, vol. 15(4), pages 1-18, March.
    18. F. Elizalde, 2025. "Fragmenting Consumer Law Through Data Protection and Digital Market Regulations: The DMA, the DSA, the GDPR, and EU Consumer Law," Journal of Consumer Policy, Springer, vol. 48(3), pages 355-389, September.
    19. Scholdra, Thomas P. & Wichmann, Julian R.K. & Reinartz, Werner J., 2023. "Reimagining personalization in the physical store," Journal of Retailing, Elsevier, vol. 99(4), pages 563-579.
    20. Gabriella Esposito & Cristina Caterina Amitrano & Ciro Troise & Dorra Yahiaoui, 2026. "Conceptualising governance pathways for digital entrepreneurial ecosystems: A Nested-Cyclical framework," International Entrepreneurship and Management Journal, Springer, vol. 22(1), pages 1-21, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • D18 - Microeconomics - - Household Behavior - - - Consumer Protection

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rza:ersawp:379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Maggi Sigg (email available below). General contact details of provider: https://ersawps.org/index.php/working-paper-series/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.