| Mon 7 Feb 2011, 15:10 | | THEE - Competition Tribunal Dismisses Telkoms Complaints |
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JSE
THEE
THEE - Competition Tribunal Dismisses Telkoms Complaints
COMPETITION TRIBUNAL DISMISSES TELKOMS COMPLAINTS
(Following is a guideline for journalists. The information can be used but
please do not quote Nandi Mokoena or the Tribunal)
On Friday, 4 February 2011, the Competition Tribunal dismissed Telkoms attempt
to quash the competition case brought against it by the Competition
Commission. Regarding the case that Internet Solutions (IS) brought against
Telkom, the Tribunal gave IS time to bring an amended case for Telkom to
answer.
In its judgment the Tribunal found that all of Telkom`s objections, to the
Commission`s allegations that it had abused its market dominance, were without
merit. The Tribunal said that Telkom`s objections to the Commission`s case
were either "misconceived" or "without substance". The Tribunal also found
that Telkom`s arguments on various points of law, including that the
allegations against it were unconstitutional, should more appropriately be
argued in the main case when that is heard.
Background
The Tribunal`s finding follows a hearing on 11 October 2010 where Telkom
argued for the dismissal of the Competition Commission and Internet Solution`s
(IS) cases both parties brought against it.
On 26 October 2009 the Commission referred its case against Telkom to the
Tribunal for adjudication, alleging that Telkom had abused its dominant
position in the market for the provision of telecommunications network
facilities. IS also referred its own complaint against Telkom and asked the
Tribunal to consider it together with the Commission`s referral.
In its investigation the Commission found that Telkom abused its near-monopoly
position in the market for the provision of telecommunications network
facilities. It did this by charging excessive prices for the basic
infrastructure needed by its downstream competitors, the internet service
providers or ISP`s, to access a range of telecommunications services, while
keeping its own ISP service charges low. In this way, Telkom also raised its
downstream competitors costs, making it difficult for them to on-sell cost
effective services to end consumers.
In Telkom`s view, the Commission`s allegations against it were
unconstitutional, vague, contradictory and did not meet all the requirements
of the Competition Act. Telkom also argued that the IS case against it
overlapped with the Commission`s case and was thus irregular.
The Tribunal heard Telkom`s arguments, as well as the Commission and IS`s
responses in October and made its finding on 4 February. This finding now
paves the way for Tribunal to hear the main cases against Telkom, namely the
allegations that it has abused its market dominance. The first of these cases
is set to start on 30 May 2011 and continue till 17 June 2011.
Issued By:
Nandi Mokoena
PR Consultant: Competition Tribunal
Cell: +27 (0) 82 399 1328
E-mail: NandisileM@live.co.za
On Behalf Of:
Lerato Motaung
Registrar: Competition Tribunal
Tel: (012) 394 3355
Cell: +27 (0) 82 556 3221
E-Mail: LeratoM@comptrib.co.za
Date: 07/02/2011 15:10:01 Produced by the JSE SENS Department.
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