Telkom: Reign of terror under threat

ADSL South Africa (Broadband South Africa), 10 November 2009

Telkom’s reign of terror is under threat if one considers that the Competition Commission under Zuma’s administration is pressing hard to fine Telkom for anti-competitive practices to the tune of R7.2bn. Under threat but no end in sight yet…

Move to impose fines on Telkom… 

The move to impose fines on Telkom for anti-competitive practices started when the SA VANS Association lodged a complaint in 2002. Telkom went to court and won the first round when they successfully argued that the Competition Commission has no jurisdiction over them. The main reason Telkom won is because of procedural errors made by the Competition Commission at the time.  

Telkom might however not be as lucky this time around, if one considers that the Competition Commission is confident that it has enough evidence against Telkom to win the appeal in court, and also enjoys the backing of more than one of Telkom’s rivals. The appeal is expected to be heard in court this week, and if the Competition Commission is successful, Telkom could be forced to cough up to R7.2bn in fines. 

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