Vodacom faces investigation for abusing its dominance

22 May 2014

South African cellco Vodacom has revealed that the country’s Competition Commission has decided to investigate a complaint lodged by smaller domestic rival Cell C for allegedly abusing its dominant position in the market by contravening sections 8(a), 8© and 8(d)(i) of the Competition Act, TechCentral reports. Cell C filed complaints against both Vodacom and MTN in October 2013, accusing the two companies of engaging in anticompetitive behaviour. In its complaints it argues that the pair charge excessive prices to the detriment of consumers and engage in exclusionary practises, including acts that require or induce a supplier or customer not to deal with a competitor. Cell C argues that MTN and Vodacom ‘discriminate between their on-net and off-net effective prices, which has a dramatic and direct impact on smaller operators’ ability to acquire new customers.’

South Africa, Cell C, MTN South Africa, Vodacom South Africa