Commission withdraws its appeal and settles with Telkom

The Competition Commission (“Commission”) and Telkom SA Limited (“Telkom”) have reached a settlement agreement on the basis that the Commission withdraws its cross appeal and Telkom withdraws its appeal from the Competition Appeal Court (“CAC”). The withdrawal of the appeal and cross-appeal was approved by the Competition Appeal Court (CAC) on 12 April 2013 and the CAC’s confirmation was communicated to Telkom on the 16 April 2013.

The effect of these withdrawals is that the matter is now officially finalised and that Telkom will pay an administrative penalty of R449 Million, in accordance with the Competition Tribunal (“Tribunal”) order, which was handed on 07 August 2012. 

When Telkom appealed the Tribunal’s ruling, the Commission prepared a case to defend the appeal and also took the opportunity to raise issues it was not entirely satisfied with in the ruling. With Telkom withdrawing its appeal, the Commission also withdrew its cross appeal, as it had been largely satisfied with the initial ruling.

Please see Tribunal’s ruling, issued on 07 August 2012 on this case.