In a significant setback for Vodacom's expansion plans, South Africa's antitrust tribunal has blocked the company's $745 million acquisition of a stake in Remgro's fiber businesses. The deal, which would have seen Vodacom inject 10 billion rand into expanding fiber access in low-income areas, was rejected due to competition concerns.

The Competition Commission, South Africa's antitrust regulator, had initially cast doubt on the deal last year, recommending that the Competition Tribunal reject the transaction. Vodacom is now evaluating its options, including a possible appeal to the Competition Appeal Court.

The deal's collapse is a blow to South Africa's digital infrastructure development, as it would have created 10,000 jobs and brought much-needed investment to the sector. Vodacom's shares fell 1.1% in Johannesburg following the news, while Remgro's shares dropped 5.9%, marking its steepest decline since March.

The decision highlights the importance of regulatory oversight in the tech sector, particularly in markets where competition is already limited. It also underscores the need for companies to carefully consider the implications of their deals on the broader market.