Vodacom-Vumatel deal will cause irreversible harm if it goes ahead, says competition watchdog

Vodacom's proposed acquisition of a 30% stake in Maziv, which controls wholesale fibre providers Vumatel and Dark Fibre Africa, will substantially lessen competition and cause permanent structural changes to the broadband market.

If permitted, the merged entity will have the ability and incentive to engage in anti-competitive conduct and cause harm that will be irreversible. This is the view of the Competition Commission, which has recommended the Competition Tribunal prohibit the proposed R13 billion transaction.