Both Telkom and the Competition Commission have withdrawn their appeals relating to a recent Competition Tribunal decision that saw the fixed-line operator fined for abusing its monopoly.
The tribunal this morning confirmed the parties had informed it they were withdrawing their appeals. Although it is not yet clear why the parties have abandoned their bids to appeal, they were in discussions in a bid to reach a settlement in another matter.
Last year, Telkom was fined R449 million by the tribunal for abusing its monopoly between 1999 and 2004, which it appealed, as did the commission, which wanted a heftier penalty.
Both parties had been in discussions to settle a different matter, which hinged on similar behaviour, which the tribunal ruled on last year. The case at the heart of the settlement discussions also relates to an alleged abuse of dominance.
The commission served a notice of motion on Telkom in October 2009, in which it referred complaints against Telkom filed by MWeb and Internet Solutions, as well as the Internet Service Providers' Association and Verizon, to the tribunal.
The commission alleges Telkom abused its dominance in various product markets concerning wholesale Internet access between 2004 and 2009. The compliant was referred to the tribunal in October 2009 and pleadings closed last March. The matter is set to be heard between 18 June and 5 July.
Neither the commission nor Telkom this morning returned calls seeking comment and it is still unclear as to how the matter of last year's fine will be handled.
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