Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      New rand stablecoin market opens into a potential regulatory wall

      New rand stablecoin market opens into a potential regulatory wall

      10 August 2026
      Simon Dingle

      ‘South Africa has to abolish exchange control’

      10 August 2026
      The most dangerous customer is the quiet one - Jannie van Zyl

      The most dangerous customer is the quiet one

      10 August 2026
      Eskom fixed the fleet and the customers left

      Eskom fixed the fleet and the customers left

      7 August 2026
      DStv chops channels as Canal+ leans harder on sport

      DStv chops channels as Canal+ leans harder on sport

      7 August 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Specops' Darren James on continuous trust in an AI world

      TCS+ | Specops’ Darren James on continuous trust in an AI world

      7 August 2026
      TCS+ | How AI is turning hardware into a subscription service - Shane van der Merwe Merchant West

      TCS+ | How AI is turning hardware into a subscription service

      6 August 2026
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Vodacom competition probe ‘unusual’

    Vodacom competition probe ‘unusual’

    By Sasha Planting5 October 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Vodacom’s head office in Midrand, Johannesburg

    The Competition Commission believes a contract between Vodacom and the government is potentially anticompetitive and has launched an investigation into the telecommunications giant to establish this.

    Specifically, the commission suspects that an exclusive contract Vodacom signed with national treasury to be the sole provider of mobile services to government constitutes an exclusionary abuse of dominance by Vodacom in contravention of the Competition Act.

    Before Vodacom entered into the exclusive four-year agreement with national treasury, all government departments could purchase mobile services from any network operator.

    The issue the commission will investigate is: is tying up a large volume of subscribers for a fairly extensive period of time is justifiable or not?

    The investigation was initiated by the commission, which became concerned at the consequences of the deal, rather than because a competitor raised any specific complaints.

    “After investigating the market ahead of the Vodacom and Neotel deal, the commission probably has a sense of just how dominant Vodacom is,” said Heather Irvine, a competition law specialist with Falcon & Hume. “That merger was prohibited and it’s possible the commission was looking for a reason to take Vodacom on.”

    According to the commission, it has information that there are 20 government departments which will be subjected to the new Vodacom contract. Other departments, including state-owned entities and municipalities, will be incentivised to adopt the new contract.

    “This case is unusual,” said Nick Altini, head of Baker McKenzie’s Antitrust & Competition Practice Group. “While there is no doubt that Vodacom is a dominant player in the market, there is no immediate evidence that the firm is looking to abuse its position through this tender. As far as one can see, it won the tender through a competitive bidding process.”

    Prohibited

    The act prohibits a dominant firm from abusing its dominance by requiring or inducing a supplier or customer to not deal with a competitor and by engaging in an exclusionary act that impedes or prevents a firm’s entry or expansion within a market, unless the firm concerned can show technological, efficiency or other pro-competitive gains which outweigh the anticompetitive effect of its act.

    “It appears that the commission is concerned about the economic phenomenon of customer foreclosure where other players are harmed simply because the contract between the two parties excludes them from a very big part of the market,” he said.

    The previous example of such a case was SAA’s anticompetitive travel-agent incentive schemes that were found to be in contravention of the Competition Act.

    While this does not sound similar, the issue the commission will investigate is: is tying up a large volume of subscribers for a fairly extensive period of time is justifiable or not? For instance is this similar to a juicy contract with the likes of a Sasol, for instance? Or will it cause longer-term harm to the other operators?

    That is what the commission will hope to find out.

    • This article was originally published on Moneyweb and is used here with permission
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Competition Commission Heather Irvine Neotel Nick Altini top Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWhoever controls the OS directs the future
    Next Article Vodacom out-of-bundle rate cut is lipstick on a pig

    Related Posts

    Capitec agrees to open Capitec Pay to rivals in Walletdoc deal

    Capitec agrees to open Capitec Pay to rivals in Walletdoc deal

    5 August 2026
    Starlink wants to be your next mobile operator

    Starlink wants to be your next mobile operator

    5 August 2026
    South Africa's AI policy collapse shows up in World Bank report

    Radical rethink for South Africa’s national AI policy

    29 July 2026
    Company News
    African Bank signs on as GEC+Africa 2026 partner

    African Bank signs on as GEC+Africa 2026 partner

    7 August 2026
    What a cloud review reveals about how a company actually runs - LSD Open

    What a cloud review reveals about how a company actually runs

    6 August 2026
    Manufacturing from a garage is now a realistic business plan - MaxLaser

    Manufacturing from a garage is now a realistic business plan

    6 August 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    New rand stablecoin market opens into a potential regulatory wall

    New rand stablecoin market opens into a potential regulatory wall

    10 August 2026
    Simon Dingle

    ‘South Africa has to abolish exchange control’

    10 August 2026
    The most dangerous customer is the quiet one - Jannie van Zyl

    The most dangerous customer is the quiet one

    10 August 2026
    Eskom fixed the fleet and the customers left

    Eskom fixed the fleet and the customers left

    7 August 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}