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Johannesburg - The Competition Tribunal has dismissed attempts by Telkom [JSE:TKG] to quash the competition case brought against it by the Competition Commission.
The matter relates to a case that Internet Solutions (IS) brought against Telkom. The tribunal provided IS time to bring an amended case for Telkom to answer.
The tribunal's finding follows a hearing on October 11 2010, at which Telkom argued for the dismissal of the cases brought against it by the commission and IS.
In 2009 the commission referred its case against Telkom to the tribunal for adjudication, alleging that Telkom had abused its dominant position in the market for the provision of telecommunications network facilities.
IS also referred its own complaint against Telkom and asked the tribunal to consider it with the commission's referral.
In its investigation, the commission found that Telkom abused its near-monopoly by charging excessive prices for the basic infrastructure needed by its downstream competitors, the internet service providers, or ISPs, to access a range of services, while keeping its own ISP service charges low.
Telkom also raised its downstream competitors' costs, making it difficult for them to sell cost-effective services to end consumers.
In Telkom's view, the commission's allegations against it were unconstitutional, vague, contradictory and did not meet all the requirements of the Competition Act.
Telkom also argued that the IS case against it overlapped with the commission's case and was thus irregular.
In its latest judgment, the tribunal found that all of Telkom's objections to the commission's allegations that it had abused its market dominance were without merit.
The tribunal said that Telkom's objections to the commission's case were either "misconceived" or "without substance".
The tribunal also found that Telkom's arguments on various points of law, including that the allegations against it were unconstitutional, should more appropriately be argued in the main case when that is heard.
This finding paves the way for the tribunal to hear the main cases against Telkom, namely the allegations that it had abused its market dominance.
The first of these cases is set to start on May 30 and continue until June 17.
The matter relates to a case that Internet Solutions (IS) brought against Telkom. The tribunal provided IS time to bring an amended case for Telkom to answer.
The tribunal's finding follows a hearing on October 11 2010, at which Telkom argued for the dismissal of the cases brought against it by the commission and IS.
In 2009 the commission referred its case against Telkom to the tribunal for adjudication, alleging that Telkom had abused its dominant position in the market for the provision of telecommunications network facilities.
IS also referred its own complaint against Telkom and asked the tribunal to consider it with the commission's referral.
In its investigation, the commission found that Telkom abused its near-monopoly by charging excessive prices for the basic infrastructure needed by its downstream competitors, the internet service providers, or ISPs, to access a range of services, while keeping its own ISP service charges low.
Telkom also raised its downstream competitors' costs, making it difficult for them to sell cost-effective services to end consumers.
In Telkom's view, the commission's allegations against it were unconstitutional, vague, contradictory and did not meet all the requirements of the Competition Act.
Telkom also argued that the IS case against it overlapped with the commission's case and was thus irregular.
In its latest judgment, the tribunal found that all of Telkom's objections to the commission's allegations that it had abused its market dominance were without merit.
The tribunal said that Telkom's objections to the commission's case were either "misconceived" or "without substance".
The tribunal also found that Telkom's arguments on various points of law, including that the allegations against it were unconstitutional, should more appropriately be argued in the main case when that is heard.
This finding paves the way for the tribunal to hear the main cases against Telkom, namely the allegations that it had abused its market dominance.
The first of these cases is set to start on May 30 and continue until June 17.
