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Competition Commission Study: Online Purchases Generate $103 Million in One Year

Competition Commission Study: Online Purchases Generate $103 Million in One Year

Mauritius stands out as the best-prepared country in Sub-Saharan Africa for the evolution of online commerce. The Competition Commission believes that the country has a strong digital foundation and favorable policies to promote this activity. However, it emphasizes that there is still work to be done regarding infrastructure, regulation, and competition.

Context

The "Digital Market Landscape Report," developed by the Competition Commission, aims to better understand the digital market landscape in Mauritius from a competition perspective. This initiative responds to the increasing importance of the digital economy and the benefits it brings to consumers, businesses, and the economy as a whole. Consumers enjoy the convenience of online shopping, reduced transaction costs, and a wider choice, while businesses can expand their customer base through digital platforms.

"While digital technologies offer obvious advantages, they also influence market functioning and the level of competition. Therefore, understanding the specifics of digital markets is crucial to identify potential competition issues and determine how to address them," stated the Competition Commission in its report.

The study covers various types of digital platforms, both transactional and non-transactional, including online commerce, hotel booking, ticketing services, taxi services, and mobile payments, among others. It is noteworthy that the analyses and conclusions presented in the report are based on information collected in 2024 and 2025.

The 4 Key Findings of the Report

  1. Mauritius has a solid digital foundation, supported by favorable policies, reliable internet connectivity, and ongoing legislative reforms under the Digital Transformation Plan 2025-2029. These initiatives aim to modernize the legal framework, enhance trust and security, and promote wider digital adoption through adaptive, forward-looking regulation. However, the speed of fixed connectivity and the cost of data packages remain areas for improvement to fully support the digitization process.
  2. Overall, the landscape of digital markets in Mauritius is evolving positively. Certain markets, like e-commerce and food delivery, are still in their infancy and currently do not present significant competition concerns. Similarly, no competition issues have been raised by stakeholders regarding other rapidly evolving markets, primarily non-transactional, such as search engines, online classifieds, software applications, social media, and online streaming.
  3. However, some concerns have been expressed by operators about regulatory uncertainty and the need to reform certain sectors, notably taxi services, online ticketing, hotel booking, and mobile payments. A more in-depth assessment of exclusivity agreements and price parity in the online hotel booking segment is also necessary.
  4. In the future, promoting competition through an adaptive regulatory framework, enhancing consumer protection, and developing a digital culture will be essential. By proactively addressing these challenges and fostering an environment conducive to innovation and equitable market access, Mauritius can sustainably develop its digital markets, benefiting both businesses and consumers.

Spokesperson

Vipin Naugah, Executive Director of the Competition Commission:
"For a small economy like Mauritius, digital markets can play a key role in breaking down geographical barriers and providing global access to local businesses. Online platforms can facilitate the entry of new players, especially SMEs, by providing a marketplace without the need to invest in a physical store. This can encourage competition, where new entrants can challenge established companies by offering innovative products. To develop digital markets, it is imperative to have adequate ICT infrastructure and technologies that enable reliable and affordable internet connectivity. The regulatory environment must also foster trust and protect users from fraud and cybercrime... It is also essential to ensure interoperability within the digital ecosystem to facilitate the entry of new players and establish protections against abuses by dominant platforms."

Observations from the Competition Commission

  • Regarding large international marketplaces, Mauritius does not seem to face the same issues as larger jurisdictions. Major global players like Amazon or Temu are only marginally present in the Mauritian market: they do not have a local site, do not offer logistics services for deliveries to Mauritius, and do not have a significant number of sellers based in Mauritius on their platforms. In the absence of these dominant players, the Mauritian online commerce landscape remains relatively fragmented, making any abuse of a dominant position unlikely.
  • As the e-commerce sector in Mauritius begins to structure itself, it is essential to monitor the competitive dynamics from the start. Early regulatory attention can help identify and remove potential barriers to entry and expansion, particularly those related to structural constraints such as high setup costs, limited logistical infrastructure, unequal access to digital tools, or strategic acquisitions that may limit competition.
  • To support local e-commerce, it is crucial to design and implement a set of policies and programs that promote access to key growth drivers: investments in logistics, digital infrastructure, secure payment systems, and affordable technologies, essential for both purely online models and marketplaces. Among these models, marketplaces play a key role, especially for SMEs, allowing them to access online sales without bearing the full cost of creating an independent platform or managing complex logistics. They also enhance the consumer experience by centralizing product comparisons, facilitating better-informed purchasing decisions, and stimulating price competition, benefiting end users.
  • To fully leverage the potential of marketplaces while ensuring fairness, regulatory safeguards must be introduced from the outset, particularly concerning logistical interoperability and payment gateways, and to guarantee access to data and platforms, especially for third-party sellers. In addition to market structure, consumer-related challenges must be addressed to support broader digital adoption. Concerns such as fraud, lack of trust in online transactions, customs clearance difficulties, discrepancies in quality between advertised and delivered products, long delivery times, or insufficient after-sales support can primarily be addressed through consumer protection frameworks.

Mauritius Ranks First in Africa

Mauritius is the best-prepared country in Africa for online shopping, according to the Competition Commission referring to the UNCTAD Business-to-Consumer (B2C) E-commerce Index 2018, which places our island at the top of the African ranking and 55th globally out of 151 countries.

Popular Platforms among Mauritians

International Giants

  • Amazon
  • Temu
  • AliExpress
  • Alibaba
  • Shein
  • eBay

Local Options

  • Electronics and Appliances: 361, Galaxy, Courts Mammouth, Redline
  • Fashion, Shoes, and Sports: Ibiza, Brasilia, Fashion House, Allsports
  • Beauty and Care: The Body Shop
  • Gadgets and Electronics: FastClick
  • Food and Beverages: Mantra Foods, Votre Pote Agé, Phoenix Beverages, Winners
  • Others: Manjoo, Toystore, Dodomarket, PriceGuru