Vodacom probed for abuse of dominance in securing Treasury tender
The Competition Commission is investigating South Africa's mobile network operator, Vodacom Group, for abuse of dominance, after the company secured an exclusive contract with National Treasury to be the sole provider of mobile telecommunication services to government.
Vodacom says Treasury issued a tender and they followed every process in securing it.
Thembinkosi Bonakele Commissioner at the Competition Commission says the commission is not questioning the process that was followed by Treasury in putting out the tender, but the outcome of this tender, making sure it is not anti-competitive.
We not questioning whether Treasury has the power to do this or not because clearly it does.Thembinkosi Bonakele, Commissioner of the Competition Commission
The Competition Act prescribes certain things that a dominant firm may not do, in this case Vodacom. One of the things it may not do is to exclude other participants from entering or expanding in a market and we are suspecting that is what this contract will effectively do.Thembinkosi Bonakele, Commissioner of the Competition Commission
What we are looking at here is the consolidation of the largest buyer in the market taking business to the largest guy in the market, taking all the business and raising barriers to entry to all others.Thembinkosi Bonakele, Commissioner of the Competition Commission
Bonakele says they have engaged with both Vodacom and Treasury respectively. They will be meeting again on Thursday because Vodacom has indicated the need to hear Treasury's response in the matter.
To hear the rest of the interview, listen below:
BMW's Heritage Month campaign features a Kwesta hit which samples another band's music. Advertising expert Andy Rice weighs in.Read More
SAA's business rescue practitioners decide to suspend airline operations. Bruce Whitfield gets comment from the experts.Read More
'It's an abnormal report in abnormal times'. Paul Berkowitz (CEO, Hlaziya Solutions) makes sense of Stats SA unemployment figures.Read More
Disposable incomes, however, are evaporating fast, leading to a marked deterioration in the ratio between debt and income.Read More
"The Toyota Starlet makes enormous sense," says motoring journalist Ciro de Siena. Got R204 900?Read More
"When including discouraged jobseekers, the unemployment rate shot up to 42%," says Cosatu’s Matthew Parks.Read More
"We aim to do banking differently," says Bettr cofounder Tobie van Zyl. "The traditional banking model is going to evaporate."Read More
There’s a glut of properties on the market - should you take advantage? Pieter Koekemoer warns against getting carried away.Read More
Kevin Lings (Chief Economist, Stanlib) opens up about his attitude to money (hopes and fears, successes and failures, etc.).Read More
Bruce Cameron discusses with Bruce Whitfield his new book on securing your retirement, despite corruption and the smashed economy.Read More