The Competition Tribunal of South Africa rules on exclusionary conduct in the telecommunications industry (Telkom)

Over eight years after the matter was referred, on 7 August 2012 the Competition Tribunal found Telkom had abused its dominant position in refusing to provide access to an essential facility to competitors in the form of independent Value Added Network Service providers (VANS), and in inducing customers not to deal with independent VANS. The Tribunal found that the conduct harmed both customers and competitors as it dampened innovation and competition in the VANS market. An administrative penalty of ZAR 499million was imposed on Telkom. The case is precedent-setting in being the first finding on the essential facility provision of the South African Competition Act. The Tribunal highlighted that the provision can be interpreted as a constructive refusal to supply, given the conditions

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Auteurs

  • University of Johannesburg
  • Acacia Economics (Johannesburg)

Citation

Simon Roberts, Reena Das Nair, The Competition Tribunal of South Africa rules on exclusionary conduct in the telecommunications industry (Telkom), 7 août 2012, e-Competitions August 2012, Art. N° 51091

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