Relations between ZTE Mzanzi and ZTE sour with accusations of collusion and intimidation

In its notice of motion to the high court seeking an injunction, ZTE Mzanzi has accused its partner, China’s ZTE, of evading its obligations by terminating all contracts. The cancellation came after ZTE Mzanzi successfully obtained a court inunction stopping a broadband project led by Telkom, Huawei, and Alcatel-Lucent. ZTE Mzanzi maintains that a unilateral cancellation cannot be effected because of the shareholders’ agreement, nor did ZTE Mzanzi commit any breach to justify such cancellation.

ZTE Mzanzi also accuses ZTE of colluding with Huawei, ZTE’s main Chinese rival, and with Telkom and Alcatel-Lucent.

In a complaint filed with the South African Competition Commission, ZTE Mzanzi claims that Telkom refuses to comply with the injunction. Furthermore, a non-compete agreement between ZTE and Huawei led to ZTE pressuring and intimidating ZTE Mzanzi to abandon its case.

Full content: Tech Central

Related content: Joint Venture…Subsidiary…What’s the Difference for Cartel Liability and Fines? (Laura Atlee, Steptoe & Johnson)

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