LML4802
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, a subsidiary of SpaceX, has expanded satellite internet operations into more
than 100 countries. However, its entry into South Africa has been restricted by legal and
regulatory barriers, including compliance with Black Economic Empowerment (B-BBEE)
ownership requirements (Financial Times, 2025). In response, Starlink has proposed to
acquire a 70% controlling stake in Vodacom Ltd, South Africa’s largest mobile operator.
This essay evaluates the type of merger, its competitive and public-interest implications,
and makes a recommendation as if acting as the Competition Commission of South
Africa.
Type of Merger
The proposed transaction constitutes a conglomerate merger with horizontal
elements. Vodacom dominates the mobile network operator (MNO) market in South
Africa, while Starlink operates in the satellite internet space. Although they do not
currently compete directly in South Africa, both provide broadband connectivity. Their
services overlap in consumer markets, especially in fixed-wireless access (FWA) and
rural internet provision. Thus, the merger would integrate complementary but potentially
substitutable technologies, raising horizontal and vertical concerns (MyBroadband,
2024).
Competitive Assessment
ASSIGNMENT 1 SEMESTER 2 2025
UNIQUE NO.
DUE DATE: 2025
, The Law of Competition and Trademarks
Evaluation of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, a subsidiary of SpaceX, has expanded satellite internet operations into more
than 100 countries. However, its entry into South Africa has been restricted by legal and
regulatory barriers, including compliance with Black Economic Empowerment (B-BBEE)
ownership requirements (Financial Times, 2025). In response, Starlink has proposed to
acquire a 70% controlling stake in Vodacom Ltd, South Africa’s largest mobile operator.
This essay evaluates the type of merger, its competitive and public-interest implications,
and makes a recommendation as if acting as the Competition Commission of South
Africa.
Type of Merger
The proposed transaction constitutes a conglomerate merger with horizontal
elements. Vodacom dominates the mobile network operator (MNO) market in South
Africa, while Starlink operates in the satellite internet space. Although they do not
currently compete directly in South Africa, both provide broadband connectivity. Their
services overlap in consumer markets, especially in fixed-wireless access (FWA) and
rural internet provision. Thus, the merger would integrate complementary but potentially
substitutable technologies, raising horizontal and vertical concerns (MyBroadband,
2024).
Competitive Assessment
