The news:
- Google has introduced a “ZA South Africa” tag to identify some South African businesses in organic search results.
- This move aims to promote local eCommerce, address competition issues, and support the South African digital economy.
- This development follows a 2023 ruling by the South African Competition Commission that concluded that the search giant’s business model and dominance hindered competition in the country.
The commission imposed several conditions on Google to forestall its anti-competition activities. One of these conditions was the introduction of a South African flag identifier and a South African platform search filter to enable consumers to identify and support local platforms.
Currently, these labels are live and consumers searching for South African platforms on Google can see it.
South African eCommerce platforms now receive a tag next to their website names in organic searches, while local products in Google’s shopping carousel display the country’s flag in the top right-hand corner.
“We are introducing new local filter optionality for South African travel and shopping platforms on our search page and dedicated local curation for apps published on the Play store by South African developers,” a Google spokesperson stated when responding to questions about the development on Monday, July 29, 2024.
While some platforms are still without the “ZA South Africa” tag, many eCommerce and accommodation businesses already have it, including takealot.com, bobshop.co.za, lekkeslaap.co.za, safarinow.com, wheretostay.co.za, travelstart.co.za., sa-venues.com, roomsforafrica.com, shotleft.co.za, and sleepingout.co.za.
“Google Search is a de facto monopoly, accounting for over 90% of all general search across desktop, tablet and mobile devices,” the competition watchdog noted in the final report of its commission’s Online Intermediation Platforms Market Inquiry.
The commission stressed that visibility on Google is vital for South African businesses to enhance discoverability and attract customers. It also mandated the tech giant to create a new free platform carousel for showcasing smaller South African companies.
Additionally, Google must provide R180 million ($98 million) in advertising credits to small platforms and R150 million ($82.4 million) in support and training for small and black-owned businesses. Google is also required to stop favouring its products in search results.Google, on its part, explained that it collaborated with the Competition Commission to identify eligible companies for the “ZA South African” marker. Other platforms will be able to apply for the label through a process that will be made available soon, the search company assured.
