A new report from the Free Market Foundation (FMF) is urging South African lawmakers to avoid uncritically adopting European Union-type regulations, particularly in the fast-evolving fields of digital markets and technology. The Foundation’s analysts caution that Europe’s rules, designed for high-income economies, could raise compliance costs and stifle innovation if imported wholesale into South Africa’s less developed digital and economic landscape.

The report highlights key differences between the South African and European contexts, including GDP levels, digital infrastructure, and unemployment rates. It warns that simply copying complex EU legislation may undermine local competitiveness and create barriers for South African entrepreneurs and businesses.

Instead, the FMF calls for locally adapted regulatory frameworks that reflect South Africa’s unique challenges and opportunities. The report argues that a “one-size-fits-all” approach risks limiting economic growth and reducing opportunity, urging policymakers to prioritise flexibility and context when considering reforms.