The Common Market for Eastern and Southern Africa (COMESA) says it has launched an investigation into possible violations of a clause by American Tower Corporation and Airtel Africa that protects against anticompetitive behaviour by firms.
The COMESA Competitive Commission, a division of the region block, made the announcement in a notice released recently.
The Commission said it received a complaint alleging anti-competitive agreements between American Tower Corporation (ATC) and Airtel Africa.
The deal allegedly allowed Airtel to take over a set number of ATC sites each year in exchange for a cash rebate from ATC.
The statement read: “Article 16 of the Regulations prohibits all agreements which may affect trade between member States and have as their object or effect the prevention, restriction or distortion of competition in the Common Market.”
The statement signed by Dr. Willard Mwemba , the director and chief executive officer, added: “The Commission will thus assess the conduct of ATC and Airtel to determine its effect in the Common Market and apply appropriate measures as provided in the Regulations.
“However, it should be noted that the commencement of investigations neither presupposes that the conduct being investigated is anti-competitive nor that A TC and/or Airtel have violated the Regulations.”
The Commission also stated that it will conduct an investigation to assess whether the alleged behaviour has as its purpose or affects the prohibition, limitation, or distortion of competition in the Common Market or a significant portion of it.
There was no immediate response from ATC and Airtel at the time of publication.
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