Johannesburg, 20 Jun 2008
Telkom has won its bid to stop the Competition Commission (CC) from referring the fixed-line operator's anti-competitive dispute with the SA Value Added Service Providers (VANs) Association to the Competition Tribunal.
This morning, the Pretoria High Court ruled that the commission should not be allowed to refer the dispute between Telkom and the VANs to the Competition Tribunal.
Presiding judge RG Claasen did not read the reasons for his judgement aloud, handing out the document to legal council of both parties. The Competition Commission was also instructed to pay Telkom's legal costs.
The legal battle follows allegations by the VANS that Telkom abused its market dominance by refusing to supply them with backbone facilities, unless they met Telkom's conditions. VANs lodged a complaint with the commission in 2004.
Legal representatives of the commission refused to comment on their loss, saying only they would provide some clarity in due course. Telkom had not yet put out a statement on the ruling at the time of publication.
The arguments
The heart of Telkom's case against the competition authorities lay in whether the commission had the right to refer the VANS complaint to the Competition Tribunal, and whether the Competition Tribunal has the competence to rule on the matter.
Telkom also contended that the VANS complaint fell within the jurisdiction of the Independent Communications Authority of SA (ICASA).
Telkom's third argument was that the Telecoms Act, which was in effect at the time, gave it the right to set out the conditions of interconnecting with VANS, as outlined in the complaint.
The commission said Telkom must still comply with the Competition Act and if the Telecoms Act entitled it to a certain action, it does not mean the Competition Act gives it such leniency.
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