South Africa: Issued Competition Tribunal ruling after CCSA prohibition recommendation on the merger between Vodacom and Maziv enforcing merger control regulation (Case No.: LM148Dec21)

On 29 October 2024, the South Africa Competition Tribunal issued a ruling prohibiting the proposed merger between Vodacom and Maziv. Following referrals from the South Africa Competition Commission (CCSA) to the Tribunal, hearings were held between 20 May and 27 September 2024, with the last submission on 16 October 2024, the Competition Tribunal rendered its decision in accordance with section 16(2) of the Competition Act, No. 89 of 1998. Hearings included submissions from industry stakeholders such as Frogfoot Networks, Telkom, MTN, Rain, and Hero Telecoms. Factual witnesses and four economic experts provided testimony representing the CCSA, the merging entities, and MTN. Additionally, the Department of Trade, Industry and Competition (dtic) and the Communication Workers' Union contributed insights on the merger’s potential economic and labour impacts. The Tribunal’s decision aligns with the findings of the CCSA, which, on 8 August 2023, expressed concerns that the merger would negatively affect competition in the 5G fixed wireless access and fibre markets. The CCSA identified potential issues with self-preferencing and competitor foreclosure, as well as the possibility of increased prices resulting from reduced direct competition. Despite commitments proposed by Vodacom and Maziv, the CCSA determined these were insufficient to counter the merger’s anticipated impact on competition.