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Cape Town – Telkom [JSE:TKG] will pay a R449m fine after reaching an agreement with the Competition Commission, the parastatal said on Tuesday.
The R449m was levied against the state-owned company by the Competition Tribunal in August 2012 for abusing its dominant market position between 1999 and 2004.
The parastatal said it withdrew an appeal against a ruling by the Competition Tribunal following complaints by the South African Value Added Networks Services (SAVA) and other complainants.
It also agreed to pay the R449m originally imposed by the Tribunal.
"Telkom and the Competition Commission had been engaged in discussions aimed at arriving at a settlement regarding Telkom's appeal and the Commission's cross-appeal to the Competition Appeal Court," it said in a statement.
It added that an agreement was reached on March 15 2013 that each party would withdraw its appeal and cross-appeal and then foot its own costs.
This deal was approved by the Competition Appeal Court on 12 April 2013.
The agreement allowed Telkom to pay 50% of the fine within six months and the balance within 18 months.
Last year the commission said that the tribunal should have fixed the penalty at R3bn.
- Fin24
The R449m was levied against the state-owned company by the Competition Tribunal in August 2012 for abusing its dominant market position between 1999 and 2004.
The parastatal said it withdrew an appeal against a ruling by the Competition Tribunal following complaints by the South African Value Added Networks Services (SAVA) and other complainants.
It also agreed to pay the R449m originally imposed by the Tribunal.
"Telkom and the Competition Commission had been engaged in discussions aimed at arriving at a settlement regarding Telkom's appeal and the Commission's cross-appeal to the Competition Appeal Court," it said in a statement.
It added that an agreement was reached on March 15 2013 that each party would withdraw its appeal and cross-appeal and then foot its own costs.
This deal was approved by the Competition Appeal Court on 12 April 2013.
The agreement allowed Telkom to pay 50% of the fine within six months and the balance within 18 months.
Last year the commission said that the tribunal should have fixed the penalty at R3bn.
- Fin24
