Ugandan telecoms merger may test COMESA regime

COMESA old flag colorUganda

The announced merger between Warid Telecom and Airtel in Uganda (a COMESA member state) may become an interesting test case for the COMESA Competition Commission‘s merger-notification regime.  At least we here at AfricanAntitrust.com think so.

Not only does this deal present the opportunity for outsiders to watch whether, and if so, when the parties will notify the transaction to the CCC (the thresholds and conditions to notifiability are almost certainly met, given the pan-African activities of Bharti, Airtel’s Indian parent company) — it also may raise substantive concerns from a competition-law and merger-enforcement perspective, in light of the fact that the reported fusion of the #2 and #3 players in the Ugandan mobile telecoms market would result in a de facto 3-to-2 merger.

It will also show how the Ugandan authorities deal with COMESA’s claim to supranational jurisdiction over transactions such as this.  (Kenya had not taken well to it previously, as we reported on this blog…)  That said, aside from any NCA (since there is none in Uganda…), the Uganda Communications Commission (UCC) has already backed the deal as apparently pro-competitive, as The Independent reports. The reasoning there seems to be that a stronger #2 player will present more competitive challenges to the #1, which is MTN Uganda. Not necessarily orthodox antitrust doctrine, but it also comes from a non-competition body, so there…

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