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Telkom faces billions in fines

Nov 27 2009 15:23 Fin24.com reporter

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

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RED Baron
Nov 28 2009 23:03 Report this comment

I don't like Telkom either, but you can't just wish a company to go under. Their is some of your own family's livelihood at stake. Another company will create a monopoly as with the cellphones. So use your brains a bit.

Hugo
Nov 28 2009 14:27 Report this comment

Telkom has cost me tens of thousands - I take great pleasure in their pain - Sorry.

sOUTH AFRICAN
Nov 28 2009 08:49 Report this comment

A shareholder of Sasol suggested that the CEO hand himself over to the cops for the same reason Telkom is guilty of. I suggest the relevant authorities take legal action against the CEO of Telkom. He/They were aware of what they were doing and hence knew it was illegal.

PROPHET
Nov 28 2009 02:29 Report this comment

Ironic, all those who rejoice in Telkom's misfortune, and I assume you are all taxpayers, all of this will be funded by taxing you. The SA taxpayer in serious crossfire these days, being fired on from higher ground. Yes, w no political control, you will always be exposed, by ever increasing snipers from surrounding kopppies...

M3
Nov 27 2009 22:54 Report this comment

Telkom needs a management shake up.A new vision and strategy keeping neotel and other potential competitors in mind.They should not be fined. Eventually the taxpayer will have to foot the bill.

Joe
Nov 27 2009 22:37 Report this comment

It'll be the happiest day of my life when telkom goes under in flames! Every single person that can think for himself knows telkom is abusing its market dominance! Fine the bastards! Bankrupt them PLEASE! telkom go to HELL!

kaas
Nov 27 2009 20:22 Report this comment

DOWN WITH TELKOM

Nasdaq7
Nov 27 2009 19:45 Report this comment

Just another reason for Telkom to never lower its internet prices...


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