Naspers-owned Takealot’s dominance and popularity as an online site was highlighted at the Competition Commission inquiry as unhappy suppliers gave scathing reports about dealing with the retailer.

However, they admitted they had to use the site as it drove the highest sales.

A Business Day report says many of the complaints against Takealot aired by sellers are being investigated for anti-competitive practices by the commission, which is running an inquiry that includes public hearings to investigate whether there are breaches of competition law or anticompetitive practices by online sellers of goods, tourism services, flight tickets, car hire and property.

Naspers was last week accused by the commission of being ‘bullies’, but Naspers SA CEO Phuthi Mahanyele-Dabengwa denied this.

Takealot yesterday said it will attempt to respond to the allegations today.

It is also appearing at the commission on 24 November.

Two sellers who testified at the hearings said they were forced to use the inquiry to detail their concerns as they had been unable to resolve them with Takealot.

The biggest issue was the ease with which customers could return products that they then had to refund, while struggling to get these products back from Takealot.

The commission said it is also investigating the practice of Takealot banning certain products being sold by certain suppliers.

Commission chief economist James Hodge also noted that in many cases online retail in SA is not profitable but is offered by mainstream retailers to retain customers.

Full Business Day report