Telstra to take ACCC before the Federal Court

Telstra has launched a case against the Australian Competition and Consumer Commission (ACCC) and three of its rival internet service providers in the Federal Court. The case is essentially a bid on the part of Telstra to limit the powers of the ACCC.

In late 2012, Telstra attempted to increase the amount it charged wholesale customers for access to its telephone exchanges and underground ducts. This led to the company attempting to raise its prices by the Consumer Price Index (CPI) rate for Vocus Fibre and two other iiNet subsidiaries. The three companies consequently appealed the move to the ACCC who in turned agreed to investigate the matter. Telstra, however, argues that the regulator was overstepping its jurisdiction and did not have the ability to pass judgment on signed-commercial contracts. 

Telstra claims that the determination that the ACCC has jurisdiction to conduct arbitration in this matter involves an error of law. Thus, Telstra is seeking a writ of prohibition or order restraining the ACCC from this endeavour.

ACCC chairman Rod Sims claims to be quite relaxed about the issue as he claims to have discussed the matter with Telstra chief executive David Thodey and they both agreed that it is a legal issue worthy of clarification.

The first directions hearing will take place on February 13 under Justice Peter Jacobson in Sydney.

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Telstra calls for limits on ACCC’s powers