MTN loses round in R78-billion legal battle

MTN has notified shareholders that the Supreme Court of Appeal has overturned a 2022 High Court ruling involving a $4.2-billion (R77.9-billion) damages claim against the company.

The mobile network operator said it intends to approach the Constitutional Court to appeal the decision.

Turkcell Iletisim Hizmetleri A.S, and Turkcell’s wholly owned subsidiary, East Asian Consortium B.V. (EAC), instituted legal action in the High Court of South Africa against MTN Group and certain of its subsidiaries in 2013.

The High Court dismissed the case in 2022, ruling that South African courts do not have jurisdiction over the matter.

MTN’s rivals appealed the matter, and the Supreme Court handed down its judgment on 29 April 2025, setting aside the earlier High Court ruling.

However, MTN said the appeals court upheld the High Court ruling that Iranian law is applicable to key aspects of the dispute.

Turkcell and EAC’s application to the South African courts came after it first tried to sue MTN in Washington, D.C. in the United States.

When they filed the case in South Africa, they sought $4.2 billion in damages, excluding interest.

The battle between the companies dates back to 2004 and centres around a tender for cellular network operating licences in Iran.

Turkcell said it was the winning bidder for the Iranian licence in 2004, with MTN coming second.

However, MTN subsequently operated Iran’s first private cellphone network as MTN Irancell.

Turkcell claimed that MTN bribed officials, arranged meetings for Iran with South African leaders, and promised Iran weapons and United Nations votes in exchange for a stake in Irancell.

Turkcell withdrew from the legal action in November 2020, leaving EAC as the sole plaintiff against MTN.

When the High Court dismissed the case in 2022 with costs, MTN told shareholders that it put an end to the Turkcell litigation.

However, its victory dance proved premature, as Turkcell took the ruling on appeal.

“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,” MTN stated.

“MTN has always maintained that the Turkcell litigation was without merit and has expressed confidence that it would successfully defend these proceedings.”