Vodacom (Pty) Ltd v Altech Autopage, A division of Altron TMT (Pty) Ltd (LM185Nov15) [2016] ZACT 43; [2016] 1 CPLR 265 (CT) (18 April 2016)

Vodacom (Pty) Ltd v Altech Autopage, A division of Altron TMT (Pty) Ltd (LM185Nov15) [2016] ZACT 43; [2016] 1 CPLR 265 (CT) (18 April 2016)

The Tribunal found that the proposed transaction would not substantially prevent or lessen competition in any relevant market. Altech Autopage's market share was low, and its exit from the market was inevitable due to industry changes and declining viability of the independent service provider model. The Commission's investigation, including supplementary reports, confirmed that intra-brand and inter-brand competition would not be significantly affected, and customers would retain access to alternative channels. The Tribunal was satisfied that employment effects, while significant, would occur regardless of the merger, but imposed conditions to mitigate these effects, including...

Citation
[2016] ZACT 43
Parties
Applicant: Vodacom (Pty) Ltd; Respondent: Altech Autopage, a division of Altron TMT (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 April 2016
Case Number
LM185Nov15
Procedural Posture
Merger Clearance / Reasons for Conditional Approval After Hearing and Supplementary Investigation
Outcome
Merger conditionally approved subject to employment-related conditions.
Judges
Andreas Wessels, Andiswa Ndoni, Imraan Valodia
Legal Topics
Merger Clearance, Public Interest Employment, Service Provider Channel, Vertical and Horizontal Assessment, Counterfactual Analysis
Competition Law Commercial and Corporate Merger Clearance Public Interest Employment Service Provider Channel Vertical and Horizontal Assessment Counterfactual Analysis

Case Brief

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Parties

Vodacom (Pty) Ltd

Applicant

Altech Autopage, a division of Altron TMT (Pty) Ltd

Respondent

Procedural Posture

Merger Clearance / Reasons for Conditional Approval After Hearing and Supplementary Investigation

Legal Issues

  1. 1 Whether the proposed acquisition of Altech Autopage's Vodacom subscriber base by Vodacom would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether the transaction would have significant adverse public interest effects, particularly regarding employment.
  3. 3 Whether Saicom's intervention and concerns 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. Altech Autopage's market share was low, and its exit from the market was inevitable due to industry changes and declining viability of the independent service provider model. The Commission's investigation, including supplementary reports, confirmed that intra-brand and inter-brand competition would not be significantly affected, and customers would retain access to alternative channels. The Tribunal was satisfied that employment effects, while significant, would occur regardless of the merger, but imposed conditions to mitigate these effects, including...

Court Disposition

Merger conditionally approved subject to employment-related conditions.

Orders

  • The proposed transaction between Vodacom (Pty) Ltd and Altech Autopage 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 and their families.