Competition Tribunal undecided on Telkom’s fate

Final arguments were heard in the Competition Tribunal’s case against telecommunications giant Telkom. Whether the company should be fined and the nature of such a possible penalty remains undecided.

If Telkom is penalised and they appeal the fine, the case could go on for several years. Desmond Rudman, partner at law firm Webber Wentzel, says Telkom’s first port of call in such a scenario would be the competition appeals court.

“The commission acts as investigator and prosecutor. It’s similar to the police and prosecutors in the criminal justice system. It collects evidence and prosecutes the matter before the tribunal,” Rudman explained. The tribunal does not have the power of a court. “Telkom will probably do both,” says Rudman.

Alfred Cockrell, Telkom senior council, suggested on Wednesday in a statement that the large fine R3.5 billion fine could be regarded unconstitutional. If the ruling goes against Telkom, and no fine is dished out, it appears unlikely Telkom will let it slip.

According to Rudman, getting even an appeal through takes several months. If unsuccessful, Telkom could turn to turn to the supreme court of appeal via the Competition Appeals Court or a petition in the supreme court.

Nico Gous