TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Alviva shares leap higher on R3-billion take-private offer

      30 June 2022

      Datatec to sell Analysys Mason for as much as R4.1-billion

      30 June 2022

      Futuregrowth launches start-up fund, targets R600-million raise

      30 June 2022

      Eskom is killing the rand

      30 June 2022

      Eskom ramps up load shedding as crisis deepens

      30 June 2022
    • World

      Graphics card prices plummet as crypto demand dries up

      30 June 2022

      Bitcoin just had its worst quarter in a decade

      30 June 2022

      Samsung beats TSMC to 3nm chip production

      30 June 2022

      Napster plots crypto comeback

      29 June 2022

      Pictures: Chinese spacecraft acquires images of entire planet of Mars

      29 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Vodacom shares tumble on competition probe

    Vodacom shares tumble on competition probe

    News By Agency Staff4 October 2017
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Vodacom Group slumped the most in more than seven years after South Africa’s antitrust regulator started a probe into a contract with the national treasury that may constitute an abuse of market dominance.

    The September 2016 deal to provide mobile phone services to the finance ministry prevents other operators from selling to state departments, the Competition Commission said in an e-mailed statement on Wednesday.

    The Vodacom contract has since been adopted by other parts of the government and some state-owned entities and municipalities will be incentivised to use it, the regulator said.

    The commission has reasonable grounds to suspect that the exclusive contract may constitute an exclusionary abuse of dominance by Vodacom

    Vodacom shares plunged as much as 8.5%, the most since May 2010, and traded 5.2% lower at R148.32 as of 3.57pm in Johannesburg. Vodafone Group, the owner of a majority 65% stake, pared gains to trade 0.1% higher.

    Vodacom is South Africa’s market leader. The treasury deal, which runs until 2020, is worth about R5bn, people familiar with the matter said at the time the contract was awarded.

    Wireless operators across sub-Saharan Africa have become the subject of government and regulatory scrutiny in recent years for dominant market positions, including Kenya’s Safaricom, in which Vodacom owns a 35% stake. MTN Group, number two to Vodacom in South Africa, has had services suspended in Nigeria, where it leads the market.

    A spokesman for Vodacom didn’t immediately comment.

    “The commission has reasonable grounds to suspect that the exclusive contract may constitute an exclusionary abuse of dominance by Vodacom in contravention of the Competition Act,” the regulator said.  — Reported by Loni Prinsloo and John Bowker, (c) 2017 Bloomberg LP

    Competition Commission MTN Safaricom top Vodacom Vodafone
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleEskom lies an ‘assault on democracy’, minister says
    Next Article Google’s new Pixel phones fall short on hardware

    Related Posts

    Alviva shares leap higher on R3-billion take-private offer

    30 June 2022

    Datatec to sell Analysys Mason for as much as R4.1-billion

    30 June 2022

    Futuregrowth launches start-up fund, targets R600-million raise

    30 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Billetterie simplifies interactions between law firms and clients

    30 June 2022

    Think herding cats is tricky? Try herding a cloud

    29 June 2022

    How your business can help hybrid workers effectively

    28 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

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