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Telkom case delayed again


Johannesburg, 04 Mar 2010

The pre-hearing date for the Competition Tribunal case against Telkom has still not been set and is likely to face another delay.

The reason for this delay, according to the Competition Tribunal, is that Telkom needs to file its response to the complaint before a date can be set for the hearing. It had until 28 February to file the necessary papers, but failed to do so.

“When a complaint is filed against you, you have 20 business days to file a response, but Telkom negotiated with the Competition Commission and got an extension until 28 February and now they're probably going to file for another extension,” says Lerato Motaung, registrar of the Competition Tribunal.

The long-standing competition investigation began in 2008, when Telkom allegedly refused to lease access facilities to VANS directly and charged them more than its own customers.

This alleged abuse of dominance led to the Competition Commission recommending to the Competition Tribunal that Telkom be fined 10% of its annual revenue for its financial year, ended 31 March 2008. Telkom's revenue was R35.9 billion during that period and so the fine could be worth as much as R3.6 billion.

Motaung says that, if Telkom delays further and does not get an extension, “the case gets stuck or the Competition Commission must bring an application of default agreement against them”.

Telkom has declined to comment on the matter, beyond confirming that no date has been set.

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