The Competition Tribunal has been criticised over lengthy delays in concluding investigations of key deals in the ICT sector.
The Competition Tribunal of South Africa has hit back at suggestions that its administrative capacity is at fault for the exceptional amount of time it has taken to reach decisions regarding key deals in the technology sector.
The tribunal has been sharply criticised by industry players for the time it took to investigate Vodacom’s proposed acquisition of a co-controlling 30-40% stake in Maziv, the parent of fibre broadband operator Vumatel.
The tribunal is yet to furnish its reasons for blocking the deal – a move that came as a surprise to the merging parties – leaving the companies in limbo. They have filed notice to appeal the decision at the competition appeals court, but aren’t able to build their case without the tribunal’s reasons document.
Blue Label Telecoms, meanwhile, has been waiting nine months for the tribunal to give its go-ahead – or not – of its plan to take control of mobile operator Cell C. The Competition Commission recommended last April that the transaction be approved. (Communications regulator Icasa last week gave its approval for the transfer of Cell C’s network and spectrum licences to Blue Label.)
Asked to comment on the criticism over the delays in making decisions in the Vumatel and Cell C cases, the Competition Tribunal has defended the time it has taken to conclude its investigations.
‘These processes take time’
“The tribunal is enjoined to conduct its hearings in accordance with the principles of natural justice, which means affording all the parties an opportunity to access the record, to request discovery of documents, to file their papers including filing factual witness statements and economic expert witness statements, before hearing the matter. These processes take time and are in the nature of legal proceedings,”
the tribunal said in e-mailed response to questions from TechCentral.
The statement mentioned that in the period from April to December 2024, 99% of mergers filed with the tribunal were heard within the required time frames. In the financial period 2023/2024, the tribunal heard 94% of mergers within the stipulated time frames.
“For each matter, a timetable is set that makes provision for interested third parties who wish to intervene, to do so; other interlocutory matters raised by parties and discovery processes; the filing of factual and expert witness statements; and hearing dates. Hearing dates depend, inter alia, on the availability of all parties and their legal representatives and economic experts,”
it said.
Source: TechCentral