Telkom agrees to pay R449m penalty

2013-04-17 13:00

Telkom will pay a R449 million penalty for abusing its dominance in the telecommunications sector, the Competition Commission has said.

Deputy commissioner Trudi Makhaya said today this would be done in terms of an agreement between the company and the commission.

“The Competition Commission and Telkom SA Limited have reached a settlement agreement on the basis that the commission withdraws its cross-appeal and Telkom withdraws its appeal from the Competition Appeal Court (CAC),” she said.

“The withdrawal of the appeal and cross-appeal was approved by the CAC on April 12 2013 and the CAC’s confirmation was communicated to Telkom on April 16 2013.”

Makhaya said the effect of the withdrawals was that the matter was now officially finalised.

Telkom would pay an administrative penalty of R449 million, in accordance with the Competition Tribunal order handed down on August 7 2012.

“When Telkom appealed the tribunal’s ruling, the commission prepared a case to defend the appeal and also took the opportunity to raise issues it was not entirely satisfied with in the ruling.

“With Telkom withdrawing its appeal, the commission also withdrew its cross-appeal, as it had been largely satisfied with the initial ruling.”

On August 7 2012, the tribunal imposed a penalty of R449 million on Telkom for abusing its dominance in the telecommunications market between 1999 and 2004.

This was a period in which Telkom was a monopoly provider of telecommunications facilities in South Africa.

The tribunal concluded Telkom used its monopoly in the facilities market to benefit its subsidiary in the competitive value-added network market.

The commission referred the matter to the tribunal after receiving a complaint from the SA Vans Association and 20 other internet service providers.

Telkom challenged the referral on various fronts, including the court’s jurisdictional grounds.

After five years of litigation, the Supreme Court of Appeal rejected the jurisdictional point in November 2009, and referred the matter back to the tribunal for a hearing.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.

Inside News24

 
/News

Book flights

Compare, Book, Fly

Traffic Alerts
Traffic
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.