Faizel Patel, Radio Islam News – 04-10-2017
The Competition Commission has initiated an abuse of dominance investigation against Vodacom after the mobile operator secured an exclusive contract with National Treasury to be the sole provider of mobile telecommunication services to the government.
In a statement, the commission says it has information that there are 20 government departments which will be subjected to the new Vodacom contract.
“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 Commission says it is of the view that the contract will entrench Vodacom’s dominant position in the relevant market including result in a loss of market share for other network operators.
At the same time Vodacom says it is surprised by the news that the Competition Commission had started an investigation into it for “abuse of dominance”.
In a statement Vodacom says it was aware of the investigation and was “committed to fully cooperating with the commission”.
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