Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Fintech takes ATM fight to competition regulator

      Fintech takes ATM fight to competition regulator

      14 July 2026
      The lone ship guarding Africa's internet - Léon Thévenin

      The lone ship guarding Africa’s internet

      14 July 2026
      The Popia problem with agentic AI

      The Popia problem with agentic AI

      14 July 2026
      Djima Antaley delivers a package for Afrety in Dakar, Senegal. Ricci Shryock/Reuters

      The middlemen powering Africa’s online shopping boom

      14 July 2026
      Purple Group buys AI fintech Telescope in R177-million deal

      Purple Group buys AI fintech Telescope in R177-million deal

      14 July 2026
    • World
      Swingeing jobs cuts at Microsoft's Xbox unit

      Swingeing jobs cuts at Microsoft’s Xbox unit

      6 July 2026

      SK Hynix ends Samsung’s 26-year reign at the top

      22 June 2026
      Google on the hook for what its AI tells users, court rules

      Google on the hook for what its AI tells users, court rules

      15 June 2026
      How Russians juggle VPNs to outwit the Kremlin

      How Russians juggle VPNs to outwit the Kremlin

      15 June 2026
      Amazon CEO flagged Anthropic AI risks to Washington - Andy Jassy

      Amazon CEO flagged Anthropic AI risks to Washington

      14 June 2026
    • In-depth
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
      Alfa's electric rebel - Alfa Romeo Junior Elettrica Veloce

      Alfa’s electric rebel

      29 April 2026
      Africa switches on as Europe dims the lights

      Africa switches on as Europe dims the lights

      9 April 2026
    • TCS
      Watts & Wheels S1E7: 'Ferrari's EV breaks the internet'

      Watts & Wheels S1E7: ‘Ferrari’s EV breaks the internet’

      8 July 2026
      TCS+ | How Tracker is turning vehicle data into business strategy - Silvia Schollenberger

      TCS+ | How Tracker is turning vehicle data into business strategy

      1 July 2026
      TCS+ | IBM Bob: an AI-powered 'development partner' for the enterprise - David Spurway

      TCS+ | IBM Bob: an AI-powered development partner for the enterprise

      30 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E6: ‘A flawless Alfa and a bakkie that divides’

      17 June 2026
      Watts & Wheels S1E6: 'A flawless Alfa and a bakkie that divides'

      Watts & Wheels S1E5: ‘A Bentley of the bush and a car that swims’

      8 June 2026
    • Opinion
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
      The author, Jannie van Zyl

      South Africa’s broadband future is being decided in orbit, not in Pretoria

      30 June 2026
      The author, Pambos Soteriades

      The pivot South Africa’s MVNOs cannot afford to miss

      23 June 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      Brazil’s online gambling crackdown is a lesson for South Africa

      22 June 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Telkom faces multibillion-rand fine for ‘abusing dominance’

    Telkom faces multibillion-rand fine for ‘abusing dominance’

    By Editor28 October 2009
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Lucasrand Tower

    The Competition Commission has referred its findings of abuse of dominance against Telkom to the Competition Tribunal for adjudication, it said on Wednesday.

    It had asked the tribunal to levy an administrative penalty of 10% on Telkom’s annual turnover for its financial year ended 31 March 2009, it said in a statement. This is the maximum fine the commission can prescribe and amounts to more than R3bn.

    “The investigation follows five complaints that were lodged by the Internet Service Providers’ Association (Ispa) and other Internet service providers, or ISPs, namely, Verizon Business, MWeb and Internet Solutions.

    “These complaints were lodged at different times during the period 2005 and 2007, but for purposes of investigation the commission combined the complaints as they raised overlapping issues.”

    During the investigation, the commission engaged with and received co-operation from the Independent Communications Authority of SA (Icasa), in accordance with the memorandum of understanding between the two regulators, it said.

    “The co-operation of the two regulators will continue during the prosecution of this matter, particularly with respect to remedies for the conduct,” the Competition Commission said.

    In its investigation it had found that Telkom abused its near-monopoly position in the market for the provision of telecoms network facilities.

    “It did this by charging excessive prices for the basic infrastructure needed by its downstream competitors, the ISPs, to access a range of telecommunications services, while keeping its own ISP service charges low.

    “In this way, Telkom also raised its downstream competitors’ costs, making it difficult for them to on sell cost-effective services to end consumers.”

    The commission’s conclusion was that Telkom had charged excessive prices after comparing Telkom’s prices to its costs, prices in other countries, prices of other operators offering similar services and prices to customers of Telkom who posed a competitive threat to it.

    “These comparisons indicated, amongst other things, that in 2006 Telkom’s prices were more than double the average of SA’s major trading partners.

    “Furthermore, in 2007, Telkom’s prices were 30% more expensive than the average of a basket of 14 countries.”

    The commission also noted that Telkom’s downstream competitors had been consistently losing market share, while Telkom’s share had been increasing over time, pointing to an inability on their part to compete effectively with Telkom.

    “The excessive prices charged by Telkom affect the prices which ISPs charge their customers. Given the widespread use of the Internet and the extensive use made of virtual private networks or VPNs by medium to large businesses to link various locations of a single enterprise, there is no doubt that these high prices detrimentally affect consumers and hinder economic development in SA.”

    Telkom said in response that the commission had engaged with it over an extended period of time in the last two years while it was completing its investigations with regard to various complaints filed with it by a number of parties.

    “The commission has clearly finalised its investigations and, in terms of the relevant provisions in the Competition Act, the commission has decided to refer certain aspects of the various matters to the Competition Tribunal for adjudication,” Telkom said.

    “Telkom will prepare its response to the referral in accordance with the relevant rules and procedures applicable to proceedings before the Competition Tribunal,” the company said.  — Sapa

    • Image credit: Nozee Le Snoop

    Subscribe to our free daily newsletter or follow us on Twitter

    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleWhy Windows 7 marks end of an era
    Next Article More bad news for SA’s big operators

    Related Posts

    Fintech takes ATM fight to competition regulator

    Fintech takes ATM fight to competition regulator

    14 July 2026
    The lone ship guarding Africa's internet - Léon Thévenin

    The lone ship guarding Africa’s internet

    14 July 2026
    The Popia problem with agentic AI

    The Popia problem with agentic AI

    14 July 2026
    Company News
    How Paratus and Eutelsat are connecting Southern Africa's mines

    How Paratus and Eutelsat are connecting Southern Africa’s mines

    14 July 2026
    Rain supercharges 5G with Huawei

    Rain supercharges 5G with Huawei

    10 July 2026
    Africa's data centres: AI, edge computing and new energy demands - Vertiv OADC Open Access Data Centres

    Africa’s data centres: AI, edge computing and new energy demands

    9 July 2026
    Opinion
    The author, Fanie van Rooyen

    South Africa can still catch the AI wave – here’s how

    7 July 2026
    The author, Fanie van Rooyen

    The AI utopia South Africa can’t afford

    1 July 2026
    The author, Jannie van Zyl

    South Africa’s broadband future is being decided in orbit, not in Pretoria

    30 June 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Fintech takes ATM fight to competition regulator

    Fintech takes ATM fight to competition regulator

    14 July 2026
    The lone ship guarding Africa's internet - Léon Thévenin

    The lone ship guarding Africa’s internet

    14 July 2026
    The Popia problem with agentic AI

    The Popia problem with agentic AI

    14 July 2026
    Djima Antaley delivers a package for Afrety in Dakar, Senegal. Ricci Shryock/Reuters

    The middlemen powering Africa’s online shopping boom

    14 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}