| Thu 13 Oct 2011, 14:54 | | THEE - The Competition Commission - Notice of upcoming competition |
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JSE
THEE
THEE - The Competition Commission - Notice of upcoming competition
Tribunal hearings
NOTICE OF UPCOMING COMPETITION TRIBUNAL HEARINGS
(Following is a guideline for journalists. The information can be used
but please do not quote Nandi Mokoena or the Tribunal)
Cases Competition Commission v Telkom SA Limited
Date 17 to 28 October 2011 and 1 to 9 December 2011
Time 10H00
Place The dti Campus
77 Meintjies Street
Mulayo Building, (Block C)
Sunnyside, Pretoria
Tel: +27 (0) 12 394 3300
Fax: 27 (0) 12 394 0169
Website: http://www.comptrib.co.za
The Telkom hearing begins
Starting on Monday 17 October the Competition Tribunal will hear the
Competition Commission`s case against Telkom. The Commission referred
this case to the Tribunal in February 2004 after it had investigated and
concluded that Telkom was abusing its dominance by charging excessive
prices, refusing access to an essential facility and engaging in price
discrimination thereby making its downstream rivals less competitive in
the telecommunications market. Telkom has denied these allegations.
This case is one of two main complaints that the Commission has referred
to the Tribunal against Telkom. The current case was referred in 2004,
while the second case was referred later, in 2009. Both cases were
brought about by complaints against Telkom from various Value Added
Network Service Providers (VANS) and Internet Service Providers (ISP`s).
The 2004 case in particular was brought by 21 complainants which included
the South African VANS Association, the Internet Service Providers
Association, AT&T Global Network Services South Africa, Internet
Solutions and Omnilink.
The history of the current Telkom case dates back to February 2004 when,
following the Commission`s referral to the Competition Tribunal, Telkom
challenged the competition authorities` jurisdiction in the case - a
matter which lasted 5 years until this point was rejected by the Supreme
Court of Appeals in November 2009. Thereafter applications followed in
which the Commission, on two occasions, sought to amend its founding
papers.
In the first of the Commission`s bids to amend its papers, the Commission
sought to clarify the range of VANS to which its case applied, clarify
the virtual private networks (VPN) it referred to in its founding papers
and to limit the period of its complaint to the end of 2004. Subject to
certain commitments by the Commission, Telkom did not oppose these
amendments and the Tribunal granted the Commission its request.
In its second bid the Commission sought to add or clarify its allegation
that Telkom had also been squeezing its rivals margins in the
telecommunications market. The Commission maintained that this amendment
was related to its earlier allegations of price discrimination and was
thus not a new addition to the case. Telkom, however, opposed the
application saying that the proposed amendment was trying to introduce a
fresh complaint regarding an alleged margin squeeze in circumstances
where that complaint did not form part of the original complaint referral
of 2004. Following a hearing into this matter, the Tribunal did not grant
the Commission its second request to amend its papers.
The Tribunal will now hear the Commission`s referral from 17 to 28
October and continue from 1 to 9 December. It expects to hear witnesses
and expert testimony from both the Commission and Telkom over this period
and thereafter must decide if Telkom has indeed abused its dominance in
the telecommunications market. In its founding papers the Commission has
asked for a penalty amounting to 10% of Telkom`s 2003 turnover.
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: 13/10/2011 14:54:46 Produced by the JSE SENS Department.
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