Originally Posted by ABC
Telstra says it will challenge the powers of the Australian Competition and Consumer Commission (ACCC) in the High Court. It comes after a dispute between the competition regulator and the telco over the amount Telstra can charge its rivals to use its broadband network.
Telstra spokesman Will Irving says the policy undermines competition and contravenes a clause in the Australian Constitution.
"It's like the ACCC telling you you're required to rent a room in your house, then telling you you have to rent it out for $17.70 a month," he said.
"The Constitution exists to protect the rights of all Australians and under the Constitution the Government has the power to compulsorily acquire property, but it can only do so where it does so on just terms."
Telstra spokesman Phil Burgess says the ACCC's regulations are invalid.
"It's been impossible to achieve a fair result within the current framework," he said.
"The framework allows arbitrary and capricious actions by the ACCC that are hostile to property rights, that are key to jobs growth and economic development in the digital age."
The ACCC says it is satisfied with the regulatory decisions it has made and will contest Telstra's case in the High Court.