Vodacom (Pty) Ltd v Storage Technology Services (Pty) Ltd (113/LM/Oct08) [2009] ZACT 16; [2009] 1 CPLR 223 (CT) (4 March 2009)

Vodacom (Pty) Ltd v Storage Technology Services (Pty) Ltd (113/LM/Oct08) [2009] ZACT 16; [2009] 1 CPLR 223 (CT) (4 March 2009)

The Tribunal found that there is no horizontal overlap between Vodacom and StorTech, as Vodacom does not currently offer on-site IT services and StorTech does not operate an off-site data centre. The relevant market was determined to be national, with both parties supplying services throughout South Africa. The market for off-site data centre services is competitive, with several established players and no evidence of high concentration. Vodacom and StorTech are not major players in the off-site data centre storage market. The proposed transaction is unlikely to result in a substantial prevention or lessening of competition or the elimination of future competition between the parties. The...

Citation
[2009] ZACT 16
Parties
Applicant: Vodacom (Pty) Ltd; Respondent: Storage Technology Services (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
4 March 2009
Case Number
113/LM/Oct08
Procedural Posture
Merger Control / Merger Clearance
Outcome
Merger unconditionally approved.
Judges
Y Carrim, N Manoim, U Bhoola
Legal Topics
Merger Control, Market Definition, Horizontal Overlap, Public Interest
Competition Law Commercial and Corporate Merger Control Market Definition Horizontal Overlap Public Interest

Case Brief

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Parties

Vodacom (Pty) Ltd

Applicant

Storage Technology Services (Pty) Ltd

Respondent

Procedural Posture

Merger Control / Merger Clearance

Legal Issues

  1. 1 Whether the proposed merger between Vodacom and Storage Technology Services is likely to substantially prevent or lessen competition in any relevant market.
  2. 2 Whether there is any horizontal overlap between the activities of Vodacom and Storage Technology Services.
  3. 3 Whether the transaction raises any public interest concerns.

Ratio Decidendi

The Tribunal found that there is no horizontal overlap between Vodacom and StorTech, as Vodacom does not currently offer on-site IT services and StorTech does not operate an off-site data centre. The relevant market was determined to be national, with both parties supplying services throughout South Africa. The market for off-site data centre services is competitive, with several established players and no evidence of high concentration. Vodacom and StorTech are not major players in the off-site data centre storage market. The proposed transaction is unlikely to result in a substantial prevention or lessening of competition or the elimination of future competition between the parties. The...

Court Disposition

Merger unconditionally approved.

Orders

  • The merger between Vodacom (Pty) Ltd and Storage Technology Services (Pty) Ltd is unconditionally approved.