The Common Market for Eastern and Southern Africa (COMESA) Competition Commission has opened investigations into potential competition violations into a deal that requires Airtel Africa to take up a certain number of tower sites annually in return for a financial rebate from the American Tower Corporation (ATC).
Both ATC and Airtel are operating in Uganda. ATC develops and leases telecommunication towers to mobile network providers like Airtel and has more than 4,100 sites in Uganda according to their website.
“The commission received a complaint alleging existence of anti-competitive agreements between American Tower Corporation and Airtel Africa,” Dr Willard Mwemba, the CCC Chief Executive Officer (CEO) said in a statement.
He added: “The Commission has commenced investigations into potential violation of Article 16 of the Regulations by American Tower Corporation and Airtel Africa operating in the Common Market.”
In the agreement, also referred to as a strategic partnership, ATC is to develop new telecommunication sites for Airtel based on ATC’s green site specifications to cut Airtel’s carbon footprint.
The statement explained that Article 16 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 agreement was announced on October 13th, 2022 and was pushed as a move to increase connectivity in Africa and extend digital inclusion, while advancing both firms’ carbon emissions reduction objectives.
