Telstra faces court over broadband price cuts

Watchdog briefs lawyers as tensions escalate

Australia's competition watchdog is gearing up for a legal battle against incumbent telco Telstra.

The Australian Competition and Consumer Commission (ACCC) confirmed that it is getting ready for court action, following an escalation of tension between the two sides.

Earlier this month the ACCC ruled that Telstra is engaged in anti-competitive conduct concerning the pricing of its wholesale broadband product.

Asked if it was preparing for court, ACCC chairman, Graeme Samuel, told the ABC: "Yes we are at the moment.

"We've started to put together the necessary documentation, briefed senior counsel and we've started to gather together now the witness statements necessary for us to go to court.

"I sincerely hope that that's not necessary, but that's going to be up to Telstra."

The competition notice issued by the ACCC refers to Telstra's decision to slash the price of its retail broadband service to AUS$29.95 (£12.25) - lower than its own wholesale price for the broadband service. ®

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