Photo by: Bloomberg
Turkish mobile operator Turkcell has been dealt another blow in its ongoing battle against South Africa-based mobile operator MTN Group, as the International Arbitration Panel dismissed the latest attempt to hold MTN legally accountable for allegedly blocking a mobile operator licence bid in Iran.
The Turkish rival had brought several international and local claims against MTN for “causing” the Turkish operator to lose a 2005 telecommunications licence bid in Iran through alleged acts of bribery and corruption.
“MTN did not cause Turkcell to lose its licence as claimed by Turkcell. The Turkcell consortium was never awarded the licence in Iran,” MTN averred.
A tribunal of independent arbitrators had now dismissed Turkcell’s 2008 arbitration under the Turkey–Iran bilateral investment treaty.
In a statement to stakeholders, MTN explained that the tribunal held that it had no jurisdiction to hear claims worth $600-million brought by Turkcell under the Turkey–Iran bilateral investment treaty, on the basis that no qualifying “investment” was made within the meaning of the treaty.
In 2012, Turkcell took to the US to invoke the 1789 Alien Tort Statute, seeking damages of $4.2-billion, plus interest and legal costs.
The proceedings were dismissed in May last year, after which Turkcell withdrew its US-based charges and pursued another case with the South Gauteng High Court, in South Africa, based on the same allegations.
This had followed a failed attempt in an Iranian court in 2005 to obtain an injunction to prevent the granting of the licence to MTN’s local operator Irancell.
“MTN will continue to defend its rights in any jurisdiction wherever the lawsuit is filed. Turkcell’s claim for damages … has no legal merit and MTN will accordingly continue to vigorously oppose it,” MTN vowed.