LML4802
Assignment 1
Semester 2
2025
, The Law of Competition and Trademarks
Assessment of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, which operates under SpaceX, has rolled out satellite-based internet services
across more than 100 countries. Its entry into South Africa, however, has faced
obstacles due to regulatory requirements, particularly the Black Economic
Empowerment (B-BBEE) ownership rules (Financial Times, 2025). To overcome these
restrictions, Starlink has proposed acquiring a 70% majority shareholding in Vodacom
Ltd, the country’s largest mobile service provider. This paper examines the nature of the
merger, its possible effects on competition and the public interest, and provides a
recommendation from the standpoint of the South African Competition Commission.
Type of Merger
The deal can be classified as a conglomerate merger with horizontal characteristics.
Vodacom is a dominant force in South Africa’s mobile network operator (MNO) market,
while Starlink specializes in satellite-based internet services. Although they do not
currently compete head-to-head in the local market, both companies operate in the
broadband sector. Their offerings intersect in areas such as fixed wireless access
(FWA) and internet provision in underserved rural regions. This means the merger
would combine complementary technologies that could, under certain conditions,
substitute one another, thereby creating both horizontal and vertical competition
concerns (MyBroadband, 2024).
Competitive Assessment
Assignment 1
Semester 2
2025
, The Law of Competition and Trademarks
Assessment of the Proposed Starlink–Vodacom Merger
Introduction
Starlink, which operates under SpaceX, has rolled out satellite-based internet services
across more than 100 countries. Its entry into South Africa, however, has faced
obstacles due to regulatory requirements, particularly the Black Economic
Empowerment (B-BBEE) ownership rules (Financial Times, 2025). To overcome these
restrictions, Starlink has proposed acquiring a 70% majority shareholding in Vodacom
Ltd, the country’s largest mobile service provider. This paper examines the nature of the
merger, its possible effects on competition and the public interest, and provides a
recommendation from the standpoint of the South African Competition Commission.
Type of Merger
The deal can be classified as a conglomerate merger with horizontal characteristics.
Vodacom is a dominant force in South Africa’s mobile network operator (MNO) market,
while Starlink specializes in satellite-based internet services. Although they do not
currently compete head-to-head in the local market, both companies operate in the
broadband sector. Their offerings intersect in areas such as fixed wireless access
(FWA) and internet provision in underserved rural regions. This means the merger
would combine complementary technologies that could, under certain conditions,
substitute one another, thereby creating both horizontal and vertical competition
concerns (MyBroadband, 2024).
Competitive Assessment
