News
LIME joins FTC action against Digicel, Claro deal
Posted:
2012-02-03 16:24:19
Telecommunications provider LIME has joined an action brought by the Fair trading Commission (FTC) in the Supreme Court seeking to overturn the acquisition and subsequent merger of rival mobile telephone operators Digicel Jamaica and Claro Jamaica.
When the matter came up for its first hearing this week, LIME filed an application seeking permission to intervene as an interested party.
Since neither Digicel nor the FTC objected to LIME’s application, Mrs. Justice A. Sinclair-Haynes, before whom lawyers for the parties appeared, granted the request.
LIME, the Caribbean business name for Cable & Wireless, is siding with the FTC, which is contending that the acquisition is likely to damage competition and stymie consumer benefits.
The FTC, which is being represented by attorney Delroy Beckford, is thus seeking a declaration that the underlying agreement between Digicel and Claro will effectively lessen competition substantially in the telecommunications market, and that the agreement is, therefore, unenforceable under Section 17 of the Fair Competition Act 1993.
In turn Digicel has filed an application asking the court to determine whether the Fair Competition Act applies to the transactions effected by the agreement with the owners of Claro for the Jamaican assets.
Digicel and Oceanic Digital Jamaica Limited, the latter trading as Claro, are being represented by attorney-at-law Georgia Gibson-Henlin.
They are also asking the court to decide if the FTC has jurisdiction over the transaction or the agreement and has applied for that issue to be determined first.
In court this week, Mrs Justice Sinclair-Haynes granted an order for that issue to be heard first, and fix it for trial on February 28.
The effect of that jurisdictional determination is that if the court rules in favour of Digicel and Oceanic Digital it would dispose of the FTC’s action. The issues raise questions of law only.
If the court rules that the FTC has jurisdiction over the Digicel-Claro transaction or agreement then the matter goes to a full-blown trial where witnesses may be called.
business@gleanerjm.com
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