Telkom says it will appeal the fine handed down to it by the Competition Tribunal earlier this month for abusing its dominance in the telecommunications market between 1999 and 2004.
Shares in Telkom declined 1,71% to R19.56 in afternoon trade on the JSE.
“Telkom wishes to advise shareholders that, Telkom has filed a notice of appeal against the said ruling. Telkom will now have forty business days to file the record of appeal before the matter can be set down for hearing by the Competition Appeal Court,” the group said in a statement on Thursday (30 August).
The Tribunal imposed penalty of R449 million on Telkom in its case against the South African Value added Networks Services (SAVA).
The Tribunal concluded that Telkom leveraged its upstream monopoly in the facilities market to advantage its own subsidiary in the competitive value added network market – Telkom’s conduct caused harm to both competitors and consumers alike and impeded competition and innovation in the dynamic VANS market.
Half of the penalty was due to be paid within six months of the Tribunal’s decision, while the balance is payable within 12 months thereafter.