LML4802
Assignment 1
Semester 2 2025
Due Year 2025
, LML4802
Assignment 1
Semester 2 2025
Due September 2025
The Law of Competition and Trademarks
Merger Classification and Competitive Assessment: The Starlink–Vodacom
Merger
The Competition Act 89 of 1998 (‘the Act’) is the cornerstone of merger regulation in
South Africa, aimed at preventing the concentration of economic power from harming
competition or the public interest. In this case, Starlink’s proposed acquisition of a 70%
controlling interest in Vodacom Ltd, a leading telecommunications operator, constitutes
a significant transaction that must be rigorously assessed under the Act. This analysis
addresses the merger’s classification, its likely competitive effects, and the broader
public-interest considerations in line with ss 11 and 12A of the Act.^1
Section 12 of the Act defines a ‘merger’ broadly as the direct or indirect acquisition of
control over the whole or part of another firm’s business. The Competition Appeal Court,
in the seminal case of Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd, affirmed
this expansive approach, confirming that it extends to the acquisition of shares or assets
and to combinations that create a new entity.^2 Starlink’s acquisition of a controlling
shareholding in Vodacom therefore squarely meets the statutory definition of a merger.
Merger Classification: A Horizontal Merger
This transaction is best characterised as a horizontal merger because both Starlink
and Vodacom operate in the same relevant market: the provision of internet and
telecommunications services. While Vodacom’s core business is mobile and fixed-line
data and voice services, and Starlink’s is satellite-based internet, they are direct
Assignment 1
Semester 2 2025
Due Year 2025
, LML4802
Assignment 1
Semester 2 2025
Due September 2025
The Law of Competition and Trademarks
Merger Classification and Competitive Assessment: The Starlink–Vodacom
Merger
The Competition Act 89 of 1998 (‘the Act’) is the cornerstone of merger regulation in
South Africa, aimed at preventing the concentration of economic power from harming
competition or the public interest. In this case, Starlink’s proposed acquisition of a 70%
controlling interest in Vodacom Ltd, a leading telecommunications operator, constitutes
a significant transaction that must be rigorously assessed under the Act. This analysis
addresses the merger’s classification, its likely competitive effects, and the broader
public-interest considerations in line with ss 11 and 12A of the Act.^1
Section 12 of the Act defines a ‘merger’ broadly as the direct or indirect acquisition of
control over the whole or part of another firm’s business. The Competition Appeal Court,
in the seminal case of Distillers Corporation (SA) Ltd v Bulmer (SA) (Pty) Ltd, affirmed
this expansive approach, confirming that it extends to the acquisition of shares or assets
and to combinations that create a new entity.^2 Starlink’s acquisition of a controlling
shareholding in Vodacom therefore squarely meets the statutory definition of a merger.
Merger Classification: A Horizontal Merger
This transaction is best characterised as a horizontal merger because both Starlink
and Vodacom operate in the same relevant market: the provision of internet and
telecommunications services. While Vodacom’s core business is mobile and fixed-line
data and voice services, and Starlink’s is satellite-based internet, they are direct
