Competition Commissioner, Tembinkosi Bonakele, says they have cited possible discrimination cases relating to data pricing amongst MTN and Vodacom customers.
This after the Competition Commission warned both firms that they have two months to reduce mobile data prices by 30 to 50% or face hefty penalties. An international benchmark has found that mobile data prices in South Africa are excessive.
Bonakele says dominant firms should refrain from exploiting their customers by charging excessive prices.
“You may not exploit consumers by charging them excessive prices. We also found they were discriminating among their customers because those who are on prepaid, for data bundles, they tend to pay higher than those on contract. So that is a possible price discrimination case there as well, which is an offence in terms of the Competition Act, when you are dominant. So there are all sorts of abuse of dominance angles we can take to the prosecution but it could only lead to penalties, bot jail time.”
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