Bully boy Telkom read the riot act

8 Aug 2012

According to Reuters, South Africa’s Competition Tribunal has punished fixed line incumbent Telkom South Africa with a ZAR449 million (USD55 million) fine for using its dominant market position to ‘bully’ potential competitors. Despite the heavy fine, the outcome is likely to be viewed in a positive light by Telkom, which originally faced a penalty of ZAR3.5 billion. When the complaint was first lodged in 2004, Telkom complained that the higher figure would be ‘catastrophic’ and jeopardise its business. In announcing its decision, the Competition Tribunal assessed: ‘Telkom impeded the growth of its competitors and retarded innovation in the market place. Telkom bullied its downstream competitors into line’.

South Africa, Telkom South Africa