Telkom has agreed to pay a ZAR449 million (US$49.2 million) fine imposed by the Competition Tribunal and withdrawn its appeal to a decision finding Telkom guilty of anti-competitive behaviour.
The part state-owned operator had filed an appeal to the Competition Appeals Court (CAC) hoping to reduce a fine imposed in August 2012 after it was found responsible for a number of anti-competitive practices between 1999 and 2004.
Meanwhile, the Competition Commission – which brought the case against Telkom to the Tribunal following complaints by the South African Value Added Networks Association and other internet providers – also filed a cross-appeal in an attempt to have the fine raised further.
Following discussions between the parties aimed at settling the issue, the agreement was arrived at that the fine will remain and both parties will drop their appeals to the CAC.
“Telkom will therefore pay the fine of R449-million that was originally awarded by the Tribunal,” Telkom confirmed.
“The terms of the agreement provide for Telkom to pay 50 per cent of the amount within six months of the date of the withdrawal (12 April 2013). The balance is to be paid within 18 months of the said date of the withdrawal,” the company said.
The agreement, which was concluded between the parties on March 15, was subject to the approval of the CAC. Such approval was granted on April 12, and communicated to Telkom yesterday.
The parties have further agreed to each pay their own legal costs pertaining to the protracted legal battle.
