Court rules against Telecom in data case 

Source: Reuters

The High Court has found that Telecom abused its market dominance to lathe away competition in the high speed data transmission market.

High-speed data transmission services let businesses digitally transmit information between sites across private networks or to other businesses.

The case was brought against Telecom by the Commerce Commission in 2004 over Telecom's wholesale pricing of data 'tails' in the period 2001-2004.

Data tails are the parts of the connection a competitor pays Telecom where its own network does not reach.

The commission says during 2001-2004 the market for high-speed data transmission services was worth an estimated $120 million per year. 

The court on Wednesday found that Telecom breached the Commerce Act by leveraging its position to charge downstream competitors disproportionately high prices for wholesale access to its network.

Telecom's penalty is yet to be decided by the court, though the company says it is disappointed at the ruling.

"The case stems from the introduction of retail and wholesale pricing of data services, more than 10 years ago, in a regulatory and competitive environment that was very different from today's," Telecom Group general counsel Tristan Gilbertson said in a statement to the market.

Telecom says the pricing structure the claim related to was introduced in 1999 and superseded in 2004 by regulated pricing.

The commission says Telecom has 20 working days to appeal the decision.