Competition Commission lambastes cell phone companies
The Competition Commission said there is reason to believe that there are features in the data service sector that may prevent, distort or restrict competition.
SOUTH Africa’s cell phone giants have come under fire as the Competition Commission became the latest body to question exorbitant mobile data prices in South Africa.
Recently the Commission released the provisional report of their Data Services Market Inquiry which aims to understand the general state of competition in the data services sector.
“The Commission has reason to believe that there are features in the sector that may prevent, distort or restrict competition. The focus of the inquiry includes whether prices are higher than they ought to be; the causes and remedies for high prices; and the impact of data prices and access to data on lower income customers, rural customers, small businesses and the unemployed,” stated the Commission.
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Temninkosi Bonakele, commissioner of the Competition Commission said South African data prices compare poorly to other BRICS and SADC countries, and that mobile operators, MTN and Vodacom charge higher prices in South Africa than they do in the other countries in which they operate.
According to their website, the Commission is empowered by the Competition Act 1998 (Act No. 89 of 1998) to investigate, control and evaluate restrictive business practices, abuse of dominant positions and mergers in order to achieve equity and efficiency in the South African economy.
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