Fixed-line operator Telkom is in talks with the Competition Commission in a bid to settle a complaint that it allegedly abused its dominance between 2004 and 2009.
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.
Trudi Makhaya, the commission's manager of advocacy and stakeholder relations, explains that the discussions would eliminate lengthy Competition Tribunal hearings, which would take up 10 days.
Last year, in another matter, Telkom was fined R449 million by the tribunal for abusing its monopoly between 1999 and 2004. Telkom is appealing the fine, as is the commission, which wants a heftier penalty.
Makhaya says both cases hinge on similar behaviour, and the tribunal has already ruled in the previous matter.
The commission was initially seeking a fine of about R3.5 billion in total. Telkom reported an operating profit of R179 million from continuing operations in the year to March. Profit from continuing operations in 2010 was R3.3 billion, and in 2011 it was R2.4 billion.
Telkom, which was not available to comment this morning, does not usually comment on matters that are before the courts.
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