Competition Commission v Telkom SA SOC Ltd (016865) [2013] ZACT 62 (18 July 2013)

Competition Commission v Telkom SA SOC Ltd (016865) [2013] ZACT 62 (18 July 2013)

The Tribunal confirmed the settlement agreement between the Competition Commission and Telkom SA SOC Limited as an order in terms of section 58(1)(a) of the Competition Act. Telkom admitted to contraventions of sections 8(c) and 8(d)(iii) by engaging in margin squeeze and anti-competitive conditional selling. The order imposes an administrative penalty of R200 million, to be paid in three instalments, and requires Telkom to implement a transfer pricing programme, a retail pricing policy, and a wholesale/retail separation to ensure non-discriminatory pricing and prevent future margin squeeze. Telkom must also reduce prices for implicated products, implement compliance and monitoring...

Citation
[2013] ZACT 62
Parties
Applicant: Competition Commission; Respondent: Telkom SA SOC Limited
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
18 July 2013
Case Number
016865
Procedural Posture
Settlement Confirmation / Order Confirming Settlement Agreement
Outcome
Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance and monitoring measures ordered.
Judges
N Manoim, Y Carrim, T Madima
Legal Topics
Margin Squeeze, Conditional Selling, Administrative Penalty, Transfer Pricing, Non Discriminatory Pricing, Bundling
Competition Law Commercial and Corporate Margin Squeeze Conditional Selling Administrative Penalty Transfer Pricing Non Discriminatory Pricing Bundling

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Parties

Competition Commission

Applicant

Telkom SA SOC Limited

Respondent

Procedural Posture

Settlement Confirmation / Order Confirming Settlement Agreement

Legal Issues

  1. 1 Did Telkom SA SOC Limited engage in anti-competitive conduct in contravention of sections 8(c) and 8(d)(iii) of the Competition Act?
  2. 2 Is the settlement agreement between the Competition Commission and Telkom appropriate for confirmation as an order of the Tribunal?
  3. 3 What remedies and compliance measures are necessary to address the admitted contraventions?

Ratio Decidendi

The Tribunal confirmed the settlement agreement between the Competition Commission and Telkom SA SOC Limited as an order in terms of section 58(1)(a) of the Competition Act. Telkom admitted to contraventions of sections 8(c) and 8(d)(iii) by engaging in margin squeeze and anti-competitive conditional selling. The order imposes an administrative penalty of R200 million, to be paid in three instalments, and requires Telkom to implement a transfer pricing programme, a retail pricing policy, and a wholesale/retail separation to ensure non-discriminatory pricing and prevent future margin squeeze. Telkom must also reduce prices for implicated products, implement compliance and monitoring...

Court Disposition

Settlement agreement confirmed as an order of the Tribunal; administrative penalty imposed; compliance and monitoring measures ordered.

Orders

  • The settlement agreement between the Competition Commission and Telkom SA SOC Limited is confirmed as an order of the Tribunal.
  • Telkom must pay an administrative penalty of R200 000 000 in three instalments as specified in the agreement.