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Vodacom govt contracts ‘may contravene’ Competition Act

On Thursday, the Competition Commission announced it is investigating the network.

Picture: Facebook.

CAPE TOWN - The Competition Commission says although cellular giant Vodacom may have followed all legal procedures in securing a deal with Treasury, the outcome may contravene the Competition Act.

On Thursday, the regulator announced that it's investigating the network after learning that the deal will subject 20 government departments to the new Vodacom contract.

Commissioner Thembinkosi Bonakele says the commission is not challenging the legality of the contract between Vodacom and Treasury, but it’s probing the outcome of the deal.

“The responsibility of the law, to ensure the outcome is not anti-competitive, is Vodacom’s. We can talk to Treasury and advocate but we don’t have the power to stop them. However, we have the power to prosecute Vodacom.”

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