6. Essay Topic: Context In 2017, the Competition Commission initiated an inquiry into the high level of data bundle prices and the importance of data affordability for the South African economy and consumers (Competition Commission 2019) They found, for example, that mobile data prices in South Africa were generally more expensive than comparator countries. The Commission argued that larger operators are actively engaged in exploitative price discrimination and partitioning strategies in order to push up margins and prices. The Commission therefore required that mobile phone operators substantially reduce tariff levels, especially on prepaid monthly bundles. Two key recommendations regarding pre-paid data bundles are particularly relevant for this essay: Vodacom and MTN must independently reach agreement with the Commission within two months on a reduction in the headline prices of all sub-500MB 30-day prepaid data bundles to reflect the same cost per MB as the 500MB 30- day bundle. 2. Vodacom and MTN must independently reach agreement with the Commission to cease ongoing partitioning and price discrimination strategies [with respect to pre-paid data bundles] that may facilitate greater exploitation of market power and anti-poor pricing. 6 SCHOOL OF ECONOMICS: ECO2003F COURSE ESSAY GUIDELINE 2022 Topic Draw on your economic theory and review of the evidence to critically evaluate the two recommendations of the Competition Commission regarding the price of pre-paid data bundles. Are the recommendations justified in terms of economic theory and empirical evidence