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ARTICLE · 03 NOVEMBER 2017

When A Competitive Bid Is Not Enough

One might think that competition law would applaud a firm that submits an independent and competitive bid, in response to a tender aimed at lowering prices.

South AfricaAntitrust/Competition Law

One might think that competition law would applaud a firm that submits an independent and competitive bid, in response to a tender aimed at lowering prices.  Recent experience in South Africa suggests that this is not always the case, and that such a firm may face investigation by the competition authorities precisely because it won the competitive tender.

In October 2017, the South African Competition Commission announced that it has initiated, and is investigating, a complaint of abuse of dominance by Vodacom, the country's largest cellular network services provider.

The subject of the complaint is a four year exclusive contract, in terms of which Vodacom will supply mobile telecommunications services to 20 government departments.

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