, LML4802 Assignment 1
Semester 2 2025
DUE 2025
Use this document as a guide and for references to answer your assignment
Starlink’s Proposed Acquisition of Vodacom: A
Competition Law Analysis
Introduction
Starlink, a subsidiary of SpaceX, is a global provider of satellite internet services
with operations in more than 100 countries. Despite rapid expansion elsewhere,
Starlink has faced challenges in entering the South African telecommunications
market, largely due to restrictions on foreign ownership and shareholding in
licensed operators. To overcome this, Starlink has proposed acquiring a 70% stake
in Vodacom Ltd., South Africa’s largest mobile network operator. This essay
classifies the type of merger, evaluates it against key competition law factors, and
makes a recommendation as if by the South African Competition Commission.
Classification of the Merger
The proposed transaction represents a horizontal merger because both Starlink
and Vodacom operate within the same broad market for the provision of internet
connectivity. Starlink delivers broadband through its satellite constellation, while
Vodacom provides mobile and fixed broadband services. The overlap arises in
broadband and data markets, where consumers view these products as substitutes.
At the same time, aspects of the transaction could be characterised as vertical
integration. Starlink’s satellite technology functions as an upstream infrastructure
service, while Vodacom distributes connectivity directly to end-users. The
combination thus has both horizontal and vertical dimensions, but the predominant
effect is horizontal since both entities compete in internet access markets.
Semester 2 2025
DUE 2025
Use this document as a guide and for references to answer your assignment
Starlink’s Proposed Acquisition of Vodacom: A
Competition Law Analysis
Introduction
Starlink, a subsidiary of SpaceX, is a global provider of satellite internet services
with operations in more than 100 countries. Despite rapid expansion elsewhere,
Starlink has faced challenges in entering the South African telecommunications
market, largely due to restrictions on foreign ownership and shareholding in
licensed operators. To overcome this, Starlink has proposed acquiring a 70% stake
in Vodacom Ltd., South Africa’s largest mobile network operator. This essay
classifies the type of merger, evaluates it against key competition law factors, and
makes a recommendation as if by the South African Competition Commission.
Classification of the Merger
The proposed transaction represents a horizontal merger because both Starlink
and Vodacom operate within the same broad market for the provision of internet
connectivity. Starlink delivers broadband through its satellite constellation, while
Vodacom provides mobile and fixed broadband services. The overlap arises in
broadband and data markets, where consumers view these products as substitutes.
At the same time, aspects of the transaction could be characterised as vertical
integration. Starlink’s satellite technology functions as an upstream infrastructure
service, while Vodacom distributes connectivity directly to end-users. The
combination thus has both horizontal and vertical dimensions, but the predominant
effect is horizontal since both entities compete in internet access markets.
