Cell C Service Provider Company (Pty) Ltd v Altech Autopage, A Division of Altron TMT (Pty) Ltd (LM117Aug15) [2016] ZACT 27; [2016] 1 CPLR 165 (CT) (30 March 2016)

Cell C Service Provider Company (Pty) Ltd v Altech Autopage, A Division of Altron TMT (Pty) Ltd (LM117Aug15) [2016] ZACT 27; [2016] 1 CPLR 165 (CT) (30 March 2016)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. The market share of the merged entity would remain below 15%, and intra-brand competition would not be significantly affected due to the lack of pricing power by service providers. Inter-brand competition would be dampened by the removal of Altech Autopage as a route to market, but customers would still have access to MNOs and other third parties. The Tribunal was satisfied that the concerns raised by Saicom regarding the on-biller segment did not apply to the Cell C transaction, and that employment effects, while significant, would have occurred regardless of the...

Citation
[2016] ZACT 27
Parties
Applicant: Cell C Service Provider Company (Pty) Ltd; Respondent: Altech Autopage, A Division of Altron TMT (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
30 March 2016
Case Number
LM117Aug15
Procedural Posture
Merger Review / Conditional Approval Following Investigation and Hearing
Outcome
Merger conditionally approved subject to employment-related undertakings and monitoring conditions.
Judges
Andreas Wessels, Andiswa Ndoni, Imraan Valodia
Legal Topics
Merger Control, Vertical and Horizontal Effects, Public Interest Employment, Service Provider Channel, Input and Customer Foreclosure
Competition Law Commercial and Corporate Telecoms and Media Merger Control Vertical and Horizontal Effects Public Interest Employment Service Provider Channel Input and Customer Foreclosure

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Parties

Cell C Service Provider Company (Pty) Ltd

Applicant

Altech Autopage, A Division of Altron TMT (Pty) Ltd

Respondent

Procedural Posture

Merger Review / Conditional Approval Following Investigation and Hearing

Legal Issues

  1. 1 Whether the proposed acquisition of Altech Autopage's Cell C subscriber base by Cell C would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction would have significant adverse effects on employment and public interest.
  3. 3 Whether the concerns raised by Saicom and other on-billers warranted further investigation or conditions.

Ratio Decidendi

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. The market share of the merged entity would remain below 15%, and intra-brand competition would not be significantly affected due to the lack of pricing power by service providers. Inter-brand competition would be dampened by the removal of Altech Autopage as a route to market, but customers would still have access to MNOs and other third parties. The Tribunal was satisfied that the concerns raised by Saicom regarding the on-biller segment did not apply to the Cell C transaction, and that employment effects, while significant, would have occurred regardless of the...

Court Disposition

Merger conditionally approved subject to employment-related undertakings and monitoring conditions.

Orders

  • The merger between Cell C Service Provider Company (Pty) Ltd and Altech Autopage's Cell C subscriber base is approved subject to the conditions set out in the Tribunal's Order and Merger Clearance Certificate dated 12 February 2016.
  • The Altron Group must make offers of redeployment to 86 employees and continue training and employee assistance programmes for affected staff.