MTN Faces Legal Setback as South Africa’s Supreme Court Rules on Turkcell Lawsuit

In a significant legal development, MTN has been dealt a blow in its ongoing lawsuit with Turkish telecommunications operator Turkcell, as South Africa’s Supreme Court of Appeal has ruled in favor of jurisdiction, allowing the case to proceed.

Background of the Dispute

The case dates back to 2013 when Turkcell Iletisim Hizmetleri and its subsidiary East Asian Consortium (EAC) filed legal action against MTN in the High Court of South Africa. Turkcell accused MTN of bribing Iranian government officials in 2004 to secure a major stake in the first private mobile telecommunications license in Iran.

The Turkish company claimed it lost out on the lucrative license due to MTN’s alleged improper actions, and it sought $4.2 billion in damages—approximately R78 billion—for lost business, revenue, and profits.

High Court Ruling in 2022

Initially, in 2022, the High Court of South Africa ruled in favor of MTN, stating that the South African courts did not have the jurisdiction to hear the case. This was a major win for MTN, which had long denied the allegations and maintained that Turkcell’s claims were without merit.

However, Turkcell appealed the decision at the Supreme Court of Appeal, leading to the recent ruling.

Supreme Court’s Latest Ruling

On 30 April 2025, the Supreme Court of Appeal overturned the High Court’s judgment and ruled that the South African courts do indeed have jurisdiction over the case. This decision means that the legal battle between MTN and Turkcell is far from over.

However, the court also upheld the High Court ruling that Iranian law would apply to key aspects of the dispute, indicating that MTN could face significant challenges in defending itself.

Despite the ruling on jurisdiction, the Supreme Court did not address the merits of Turkcell’s allegations against MTN, leaving the allegations untested in court. MTN has consistently argued that the case is without merit and remains confident in its defense.

MTN’s Response and Future Plans

MTN expressed its intention to appeal the Supreme Court’s decision, stating that it plans to approach South Africa’s Constitutional Court in an effort to overturn the ruling.

In a statement released on 30 April, MTN said:
“The decision to uphold the appeal does not relate to the merits of Turkcell’s claims or the allegations made against MTN Group, which have not yet been tested in court.”

The company reiterated its stance that it would successfully defend the proceedings, noting that the case has been ongoing for over a decade.

What’s Next for MTN?

The latest ruling means that MTN is facing a prolonged legal fight, with the possibility of even higher stakes if the case proceeds to court. As the largest mobile operator in Africa, MTN’s legal battles could have significant implications not only for the company but for the broader telecommunications industry.

As the Constitutional Court appeal looms, the final resolution of the MTN-Turkcell dispute remains uncertain. However, for now, the case continues to be a key focal point for investors, legal experts, and stakeholders in the telecom sector.

MTN has faced a major setback in its legal fight with Turkcell, but the company remains resolute in its belief that the claims are without foundation. With further appeals on the horizon, it remains to be seen how this high-profile legal battle will unfold.

{Source: Daily Investor}

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