South African tech entrepreneur Nkosana Makate scored a major victory yesterday in his long-standing battle with telecommunications giant Vodacom, as the Supreme Court of Appeal (SCA) ruled in his favour regarding compensation for his “Please Call Me” concept. Despite this win, the saga appears far from over, with Vodacom indicating their intention to appeal further.
Nkosana Makate’s Triumph, Vodacom’s Offer Deemed Inadequate
Makate initially envisioned the “Please Call Me” service in 2001, allowing prepaid users to request a callback without airtime. While Vodacom implemented the service, initial compensation to Makate remained a contentious issue. In 2019, the company offered him US$2,5 million (R47 million), which he rightfully deemed insufficient.
Yesterday’s SCA ruling sided with Makate, declaring the previous offer inadequate. The court determined that he is entitled to 5 to 7.5% of the revenue generated by “Please Call Me” over 18 years (2001-2019), potentially amounting to significantly more than the initial offer.
Vodacom Digs In, Eyes Constitutional Challenge
While the SCA ruling marks a significant win for Makate, Vodacom refuses to concede defeat. The company announced its intention to file an application for leave to appeal to the Constitutional Court of South Africa. This action demonstrates Vodacom’s continued resistance to the court’s decision and potentially sets the stage for an even lengthier legal battle.
President of the Economic Freedom Fighters, Julius Malema, took to X (formerly known as Twitter) with a scathing comment after Vodacom’s remarks. He said:
“It’s high time Vodacom stops its nonsense and takes full responsibility. What started as a simple transactional dispute between two parties has now become a national irritation because they think they can bully him. Appealing to the ConCourt to fight the SCA ruling in favour of Makate is entirely unnecessary. Please don’t say we are not nice people, be warned.”
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What Lies Ahead?
The Constitutional Court has the discretion to accept or reject the telecoms giant’s appeal application. Should it be accepted, the case could drag on for months, adding another layer of complexity to this already extended legal saga. Ultimately, the outcome will determine the final compensation awarded to Makate for his revolutionary “Please Call Me” idea.
Makate was thrilled about the outcome of the case because the SCA’s ruling was clear. He stated:
“The end is near, even with the Constitutional Court within 30 days, they would have to petition, and the Constitutional Court can still rule within a couple of days. Even if they get a hearing at the Constitutional Court, it can still happen this year and this matter could be done and dusted before the end of this year,”
Key Takeaways:
- Makate won his appeal against Vodacom’s initial compensation offer in the SCA.
- He is entitled to 5 to 7.5% of “Please Call Me” revenue from 2001-2019, potentially a much larger sum.
- Vodacom plans to appeal to the Constitutional Court, prolonging the legal battle.
- The conclusion regarding Makate’s compensation remains uncertain.
In conclusion, the ongoing legal battle between Makate and Vodacom continues. While Makate and his supporters are confident that his SCA victory bring the matter nearer to a close, Vodacom has expressed its disappointment in the ruling and is resolute on appealing. The nation is at the edge of its seat, awaiting a fair close to this continuing battle that resembles a David and Goliath story.