Johannesburg - The Supreme Court of Appeal has ruled that the Competition Commission has jurisdiction over Telkom, clearing the way for fines to be levied against the fixed-line operator which could amount to billions of rands.

News site TechCentral reported on Friday the issue is related to a complaint brought against Telkom by the SA Vans Association in 2002. At the time, the commission recommended that the tribunal impose a fine of 10% of Telkom's annual revenue. This amounted to R3.7bn.

However, Telkom took the commission to the High Court so that a judge could determine whether it had jurisdiction in the matter. The Court concurred with Telkom, but the commission took the decision on appeal. Judgment was handed down on Friday.

In October, the commission referred a separate matter to the tribunal, in which Telkom stands accused of abusing its dominance in the internet market.

Following the ruling, Telkom refused to comment, except for saying that it is "studying the reasons for the Court's judgment".

- Fin24.com