Shareholders are advised that Telkom SA SOC Limited ("Telkom") and the Competition Commission of South Africa ("Commission") have concluded a settlement agreement to resolve a series of complaints lodged against Telkom during the period 26 June 2005 to 19 July 2007 by certain Internet Service Providers ("ISPs"), namely Internet Solutions Pty Ltd, the internet division of Multichoice Subscriber Management Services Pty Ltd, Verizon Pty Ltd and the Internet Service Providers Association.
The Commission referred elements of the above complaints to the Competition Tribunal ("Tribunal") on 26 October 2009 (the "Referral"). In the Referral, the Commission characterised Telkom's conduct as a contravention of sections 8(a), 8(b), 8(c), and 8(d) (iii) of the Competition Act, 1998 ("the Competition Act").
The main aspects of the settlement package are:
The agreement was signed by Telkom on 14 June 2013 and is subject to approval by the Competition Tribunal. Telkom and the Commission will jointly apply to the Tribunal for the settlement to be made an order of the Tribunal in terms of section 27 of the Competition Act.
Telkom has made a provision in its 2013 annual financial statements for the full amount of the R200 million penalty.
18 June 2013
Sponsor to Telkom:
Standard Bank of South Africa Limited