Cellular giant Vodacom is not yet in the clear with the competition authorities.
Yesterday, the Competition Tribunal gave its unconditional approval of Vodacom`s R206 million acquisition of Global Telematics South Africa (GTSA).
However, competition commissioner Shan Rambaruth says the commission is still looking into taking Vodacom to task for allegedly lying at the hearings.
"We will consider the broader question of how to prevent this from happening again," says Rambaruth. "Criminal charges are one option that we need to explore, but no decision has been taken yet."
According to the Competition Tribunal, Vodacom lied in its previous submissions on the GTSA deal to the Competition Commission. Vodacom executives said the reason for the deal was to "strengthen ties with customers"; however, internal documents that emerged at the tribunal indicated the real reason was to gain access to GTSA`s customer base, reduce competition and improve margins.
The Competition Commission is a statutory body that investigates and evaluates allegedly restrictive business practices or abuse of dominance in the market. Its decisions can be appealed against, in which case it goes before the Competition Tribunal, which then has to adjudicate the matter, impose a remedy, adjudicate costs, and order interim relief.
Disregarding the commission
Rambaruth says, while individual Vodacom executives will not be prosecuted criminally, the company as a whole might find itself in court.
"We would have requested information from a company via a lawyer," he explains.
He says the commission will also look at beefing up its standing - which it believes Vodacom "disregarded" - by being more vigorous in its evidence processes in future.
"We would subpoena for information and ask parties to declare affidavits," he says.
The Competition Tribunal is still to issue its reasons for approving the Vodacom deal. However, the commission approved it because GTSA`s licence is to expire at the end of the month.
Vodacom`s group chief communications officer, Dot Field, says the Competition Commission has not yet been in contact with the company.
However, she maintains "we [Vodacom] have at no stage lied to the commission and we are ready and willing to cooperate with them on any issue".
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