Fin24

Commission wants steeper Telkom fine

2012-09-14 15:06

Cape Town - The Competition Commission has filed a cross appeal against sections of the Competition Tribunal's guilty finding of Telkom's anticompetitive behaviour and wants the fixed-line operator to face a stiffer penalty.

TechCentral reported that the Commission believed it had proven the grounds for a conviction on other grounds and that the tribunal should have imposed the proposed penalty of around R3bn. It still wants Telkom [JSE:TKG] to pay a higher fine and believes the tribunal made a mistake by making the penalty so low.

Telkom's appeal against the fine and the commission's cross appeal mean that Telkom would not be required to meet the requirements of the tribunal's ruling, the report said.

But in the event that the commission's cross appeal is successful, then Telkom could face a steeper penalty with a much wider precedent.

Telkom said it had received notice of the Competition Commission's cross appeal.

"The commission is fully within its rights to cross appeal those aspects of the tribunal’s ruling it does not agree with. The matter will now proceed to a hearing of the appeal and cross appeal by the competition appeal court," a Telkom spokesperson is quoted as saying.

In April the Competition Tribunal fined Telkom R449m for abusing its dominance in the telecommunications market between 1999 and 2004.

The fine followed a decade-long investigation into the telecommunications company's practices.


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Comments
  • napolita.kio - 2012-09-14 15:44

    Given that government effectively owns Telkom and that such fines go to the treasury, what is the point of the fine? And it cannot be a question of principle on the part of the Competition Commission since they had a chance to do so with the construction companies, bread price-fixing story, etc but never did!

  • vernon.samuel.7 - 2012-09-14 16:22

    No skin off Telkom's nose. They will simply put up their tariffs and the ever-present tax payer will foot the bill. Wonder if privatisation of the parastatals may not be the best solution? And maybe some decent competition.

  • africanwolf - 2012-09-14 17:01

    Instead of fining them and filling the government coffers , rather make them reduce the prices, like the rest of the world.

  • TacksGP - 2012-09-14 17:42

    We should be getting our money's back, obviously they made this money from us consumers, mxm!

  • JamesMWood - 2012-09-14 18:29

    For once I am gratefull to oiur governments racist policy where as a white I could not invest in telkom when they listed. Calling them a joke is an understatement, they are an embarressment!

  • johnnie.vercuil - 2012-09-14 18:30

    Somebody has been given a bit too much authority and now really wants to show what he can achieve, but in the end the taxpayer must just dock up when Telkom increases the price to make up the fine.

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