South Africa: Issued interim ruling in CCSA investigation into merger between Vodacom and Maziv

On 8 August 2023, the South Africa Competition Commission (CCSA) issued a interim ruling regarding its investigation into the merger between Vodacom and Maziv. Vodacom, a mobile operator, planned to acquire control of Maziv, which owns Dark Fibre Africa and Vumatel. The CCSA stated that the merger would combine significant fibre infrastructure with a leading mobile operator. The CCSA, in its investigation, found that the merger could potentially negatively impact competition in the 5G fixed wireless access and fibre markets. The loss of direct competition between Vodacom and Maziv's fibre networks could lead to higher prices. Additionally, concerns about self-preferencing and foreclosure of competitors have been identified. The CCSA determined that the merging parties proposed commitments don't outweigh the potential competition harm. Consequently, the CCSA recommended the prohibition of the merger.