Fixed-line operator Telkom has lost out on a bid to have a Competition Commission case - alleging it abused its dominant market position - dropped, paving the way for the matter to finally be heard.
Two years ago, the commission referred the abuse of dominance case against Telkom to the Competition Tribunal. The commission wants Telkom fined 10% of its 2009 turnover, which amounts to almost R3.7 billion.
Last year, Telkom tried to have the matter thrown out. Arguing before the tribunal, lawyers for the fixed-line operator said in October that the case had no merit and was vague, contradictory and unconstitutional.
The commission's investigation dates back to 2005, when it launched a probe into whether Telkom's wholesale pricing was excessive and harmed downstream providers such as Internet Solutions (IS). IS has also referred the matter to the tribunal, but has been given time to amend its referral.
The tribunal ruled that all of Telkom's objections to the commission's allegations had no merit. The tribunal said Telkom's objections to the commission's case were either “misconceived” or “withoutsubstance”.
The competition authorities have not indicated when the matter will be heard, but Keith Weeks, head of the commission's enforcements and exemptions division, previously indicated it may go before the tribunal at the end of this year.
This is the second case that Telkom faces before the tribunal. The first dates back to 2002 and deals with a complaint by the then value-added network services (VANS) to the commission. That matter will be heard between 30 May and 17 June.
The VANS accused the fixed-line operator of abusing its market dominance by refusing to supply them with backbone and access facilities, unless they met Telkom's conditions. The commission referred the matter to the tribunal in 2004, but Telkom's legal manoeuvring has delayed hearings several times.
If Telkom loses both cases, it could face a fine of up to R7 billion.
The company was not immediately able to comment this morning, but indicated it would do so at a later stage.
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