The Competition Commission of the Common Market for Eastern and Southern Africa (COMESA) has declared that it is examining potential anti-competitive behavior by Airtel Africa and American Tower Corporation (ATC). This investigation was prompted by a partnership agreement signed by the two companies in 2022.
As part of its regulatory responsibilities, the COMESA Competition Commission is responsible for enforcing anti-competitive trade practices laws amongst its member states, as enshrined in Article 16 of its regulations.
The Commission’s Director and Chief Executive Officer, Dr Willard Mwemba, released a statement saying that the partnership between Airtel Africa and ATC could potentially contravene these rules. The COMESA regulator’s interest was sparked by a previous report alleging ongoing anti-competitive conduct between the two firms.
The deal signed in 2022 is a multi-year, multi-product partnership. As per the terms of this agreement, Airtel Africa—focused on servicing the African continent—would utilize infrastructure sites owned by ATC, a US-based provider, in Nigeria, Kenya, Niger, and Uganda to expand its network.
Reports suggest that the agreement stipulates Airtel Africa’s use of certain designated ATC sites annually, and in exchange, ATC would provide Airtel Africa with a monetary rebate. This fundamentally means that ATC will reap some financial benefit from Airtel’s patronization.
Critics argue that such an agreement could be a strategic move designed to bar access for other telecommunications operators to these vital infrastructure sites, effectively stifling competition. Should this behavior be substantiated, it will constitute a violation of the COMESA Competition Commission’s rules. These rules strictly prohibit anti-competitive trade deals that prevent, impede, or distort competition within the Common Market.
According to the Guidelines on Restrictive Business Practice implemented by the COMESA Competition Commission in 2019, anti-competitive behavior is characterized as an activity that significantly inhibits competition between Member States, unless it is exempted by law or approved in a manner mandated by the Regulations.
In a statement titled “Notice of Commencement of Investigations into Alleged Anticompetitive Conduct by American Tower Corporation and Airtel Africa,” the commission has pledged to rigorously scrutinize the existing agreement between both companies, with a view to ascertain if it infringes upon its anti-competitive regulations and how this might impact the market.
However, the commission emphasized that this should not be construed as an implication that ATC or Airtel are engaging in anti-competitive behavior or have breached any of its rules pertaining to this. The statement was simply announcing an ongoing investigation, and all relevant stakeholders, as well as the general public, are urged to observe the process.
ATC and Airtel have been given until Thursday, March 14, 2024, to present their respective positions in response to the investigation.
