Sha’ista Goga and Ryan Hawthorne carried out phase II of a market inquiry into the banking sector for the Competition Authority of Kenya (CAK). This was focused on identifying and understanding factors that impact on competition dynamics in both traditional and digital banking services from a demand side or customer perspective. A key focus was understanding the ability of customers to impose competitive discipline on banks. This involved assessing facets such as price transparency and switching. The study assessed the extent to which banks provided adequate disclosure, the extent to which customers were able to meaningfully engage with information provided, and the ease, ability and incentive for consumers to switch. Furthermore, the study looked at whether a lack of consumer engagement and barriers to switching undermined incentives for banks to compete in parameters such as price, quality of service and innovation. The study used a combination of qualitative, quantitative and experimental methods. Behavioural economics experiments were engaged in to understand barriers to switching and to determine whether prompts could be use to enhance competitive behaviour.
Expert economic advice to the Independent Communications Authority of South Africa in relation to a review of its spectrum auction decision, 2016
PPM Attorneys (attorneys for ICASA) briefed Acacia Economics to provide expert economic reports to the High Court in relation to the review of ICASA’s spectrum auction decision brought by the Minister of Telecommunications and Postal services. Acacia Economics provided economic analysis in relation to the concerns raised by the DTPS, including a review of international best-practice in spectrum auction design and an assessment of the possible competition implications of ICASA's proposed approach.
Expert economic advice in relation to a telecoms merger, 2016
Cliffe Dekker Hofmeyr briefed Acacia Economics to prepare independent competition and consumer protection reports in relation to a merger between two private entities in the telecommunications sector.
Economic analysis conducted for a market inquiry into USSD in Kenya for the Competition Authority of Kenya, 2015 - 2016
Acacia Economics, together with Macmillan Keck Attorneys & Solicitors, that conducted a market inquiry into unstructured supplementary services data (USSD) in Kenya for the Competition Authority of Kenya.
Economic experts for the Independent Communications Authority of South Africa in relation to the Vodacom/Neotel merger, 2015
Acacia Economics provided expert advice to ICASA in relation to the proposed merger between Vodacom and Neotel. The Competition Commisison had raised concerns that the merger would lead to a concentration of spectrum in the hands of Vodacom, which could further entrench its dominant position. Competing operators MTN, Cell C and Telkom intervened in the matter, as well as ICASA and the Ministers for Telecommunications and Postal Services and Economic Development. All were concerned that Vodacom's market power and first-mover advantage would be strengthened by the acquisition of Neotel's spectrum, a vital input for the development of a high speed LTE network. Other operators were constrained in the ability to access more spectrum, as additional spectrum was still to be assigned to mobile operators by ICASA and it was unclear when this would take place. Acacia Economics prepared an expert report which analysed the likely competition implications of the transaction. The merger was abandoned by the parties before a Tribunal hearing on the matter was held.
Expert economic advice on the Coca Cola / SAB (bottlers) merger for the Economic Development Department, 2015 - 2016
Werksmans Attorneys (attorneys for the Economic Development Department) appointed Acacia Economics to provide expert advice to the Economic Development Department in relation to the competition and public interest effects the merger between Coca-Cola and SAB (bottlers) in South Africa.
Expert economic advice in relation to a High Court review of a decision on piped gas tariffs by the National Energy Regulator of South Africa, 2014 - 2015
Acacia Economics provided expert economic advice to the National Energy Regulator of South Africa in relation to a review of its decision on maximum piped gas prices as well as trading and transmission tariffs.
Economic experts for an excessive pricing complaint against Sasol Chemical Industries for the Competition Commission of South Africa, 2015 - 2016
Acacia Economics advised the Competition Commission of South Africa on the excessive pricing complaint in relation to polymers brought against Sasol Chemical Industries.
Review of Vodacom/Neotel and MTN/Telkom RAN sharing for the Independent Communications Authority of South Africa, 2014
ICASA briefed Acacia Economics to provide an analysis of the competition effects of the MTN/Telkom Radio Access Network (RAN) sharing transaction and the Vodacom/Neotel merger.
Expert economic advice on a potential complaint in the ICT sector, 2015
Nortons Inc briefed Acacia Economics to provide advice for a client on the competition effects of a firm’s conduct in the sector, including on the possible merits of bringing a complaint to the Competition Commission.
Expert economic advice on a complaint in the liquid fuels sector, 2014 - 2015
Acacia Economics advised a client on the competition effects of a firm’s conduct in the sector, including in relation to a complaint to the Competition Commission.
Expert advice to a client in relation to a potential merger in the clothing and textiles sector, 2014
Acacia Economics advised a client on the competition effects of a potential merger in the clothing and textiles sector.
Review of mergers and provision of training for the Competition Authority of Botswana, 2014
Acacia Economics prepared a review of mergers in Botswana and training on competition economics to the Competition Authority in Botswana.
Provision of training for the Zimbabwe Competition and Tariff Commission, 2014
Acacia Economics provided training on competition economics to the Competition and Tariff Commission of Zimbabwe.
Expert economic advice on a potential merger in the financial services sector, 2014
Acacia Economics advised a client in the financial services sector on the competition effects of a potential merger in the sector.
Review of the Competition Commission Banking Enquiry for the Competition Commission of South Africa, 2014
Sha’ista Goga, and Ryan Hawthorne conducted a review of the Competition Commission's banking inquiry for the Competition Commission, including a review of interchange. The Competition Commission launched the Banking Enquiry in August 2006 and published its findings and recommendations in June 2008. These recommendations included a range of measures to stimulate greater competition in retail banking and protect consumers, including: a cap on fees for rejected debit orders, a move to direct charging by ATM providers, a change to the determination of interchange in payment card and other relevant payment streams, the removal of restrictions on cash-back at point of sale, rule changes to allow non-bank providers of payment services to participate in clearing and settlement, changes to the rules of the Payments Association of South Africa (PASA), changes to the code of banking practice and measures to assist with the comparison of different products by customers and facilitate switching. The review conducted by Acacia Economics considered the extent to which these recommendations have been implemented, and the impact that they have had on competition in the sector. The review found that some positive changes have been observed in the industry, particularly in relation to the transparency of ATM charges and pro-consumer commitments in the Code of Banking Practice. However, several recommendations had not been implemented such as those seeking to improve comparability across bank products and to move from interchange pricing on ATMs to direct charging. Although some smaller new entrant banks had grown since the Enquiry, it was found that there is a need for greater consideration of competition issues in the regulation of the sector as well as measures to facilitate switching, greater independencs of PASA and a risk-based prudential regulatory framework for current non-banks.