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Competition Commission gets tough on Telkom

The Competition Commission wants Telkom to pay a heavy penalty for abusing its dominance of the...

The information age. Picture: stock.xchng

The Competition Commission wants Telkom to pay a heavy penalty for abusing its dominance of the internet market.

It has asked the competition tribunal to levy an administrative penalty of ten percent of Telkom’s turnover for the financial year ending in March this year.<?xml:namespace prefix="o" ns="urn:schemas-microsoft-com:office:office"?>

The Competition Commission on Wednesday said an investigation was launched following five complaints lodged by internet service providers.

It was found that Telkom was charging service providers excessive amounts for its network facilities while keeping its own service provider charges low.

In this way, Telkom raised the costs of its competitors making it difficult for them to sell their products to the public and raising the cost of using the internet.

The commission said in the end it was the consumer and ultimately the country’s economy that suffered.