The Competition Commission wants to add charges against Telkom in two cases of alleged market position abuse, which is now being investigated by the Competition Tribunal.

Telkom faces potential charges of up to R7bn in the two cases, one relating to a complaint by Internet service providers and another lodged by former value-added network service providers (Vans) as far back as 2004.

The tribunal has yet to hear the main arguments in either case, thanks to what it calls “a number of technical proceedings” which have held back the main event.

In both cases, Telkom stands accused of abusing its dominance or charging excessive prices to keep smaller businesses from competing effectively.

The commission now wants to “add or clarify” its allegations against Telkom, saying the telecommunications giant has also been “squeezing its rivals’ margins” making them less competitive in the market.

According to a statement released by the tribunal, the new charges only apply to the Vans case.

The tribunal will hear the commission’s argument on Friday and Telkom is likely to continue its battle to get the two cases thrown out.

However, Telkom’s every attempt to have the cases thrown out has so far been thwarted.

It first tried to have the case lodged by the Vans halted when it questioned the jurisdiction of the Competition Commission.

The Vans, some of which have since received licences allowing them to be fully fledged telecoms operators, accused Telkom of abusing its market dominance by refusing to supply them with facilities.

The case was initially referred to the tribunal in 2004.

Telkom tried to stop that in the courts, but eventually lost at the supreme court of appeal.

The case was again referred to the tribunal late last year and was followed a few months later by a complaint lodged by Internet service providers.

The founding documents submitted by the commission to the tribunal say that Telkom charged excessive prices for basic infrastructure needed by Internet providers to on-sell to their customers.

In October this year, Telkom called on the tribunal to throw the two cases out. It argued that the allegations made by the Competition Commission were “unconstitutional, vague and contradictory”. The telecoms group also argued that the complaint did not meet all the requirements of the Competition Act.

Both cases were referred by the commission to the tribunal, with a recommendation that Telkom be fined 10% of its annual turnover in the year of the infraction.

The recommended fines amount to about a combined R7bn.

Telkom will oppose the commission’s new charges, which will be officially heard on Friday. It says the additional charges should be considered a fresh complaint and should not be included in either of the existing cases. — Candice Jones, TechCentral