A potential storm is brewing for American Tower Corporation (ATC) and Airtel Africa, as the Common Market for Eastern and Southern Africa (COMESA) competition commission investigates their 2022 partnership agreement. The probe centers around suspicions of anti-competitive behavior, with allegations that Airtel is acquiring ATC sites annually, receiving cash rebates in return.
COMESA, acting on a complaint, is scrutinizing if this deal violates Article 16 of their regulations, which prohibits agreements impacting trade between member states and fair competition. Airtel Africa and ATC must respond to the commission’s queries by March 14th.
In 2022, Airtel and ATC entered a multi-year agreement aiming to enhance Airtel’s network in Kenya, Niger, Nigeria, and Uganda using ATC’s sites. The deal is now under thorough investigation by COMESA, raising questions about potential market interference. ATC, a tower developer and leaser, has a subsidiary, ATC Kenya, owning numerous telecommunication towers in Kenya.
The agreement was initially portrayed as a strategic partnership to increase connectivity, digital inclusion, and reduce carbon emissions, aligning with both firms’ objectives. However, the recent probe casts doubt on the nature of the partnership, emphasizing the need for scrutiny in the evolving telecom landscape.
