TELECOMS giant Digicel has filed a suit in the Supreme Court challenging the legal standing of the Fair Trading Commission (FTC) to oppose its merger with telecoms provider Claro.

The merger is to come into effect on March 1 when Claro will cease operating in Jamaica.

The FTC had last month filed suit in the High Court seeking declarations that, if granted, would result in the scuttling of the merger and fines of $5 million against Digicel Jamaica Limited and Oceanic Digital Jamaica Limited for each detected breach of the Fair Competition Act.

On January 31, when the FTC's case is to be heard, the regulatory body is expected to ask for an injunction blocking the merger, which it claimed would result in a lessening of competition in the telecoms market and adversely affect customers.

If granted, the injunction would remain in place pending the outcome of the trial.

The aspect of the deal that will see Claro taking over Digicel's Honduras operation is also being challenged by the FTC.

But last week ,Digicel, through the law firm Henlin Gibson Henlin, filed suit in which it is challenging whether or not the Fair Trading Act applies to the transaction leading to the pending merger and whether the FTC has jurisdiction in relation to the transaction.

That trial will also be heard on January 31.

The FTC suit follows a failed attempt in the Supreme Court by telecoms provider LIME to have then Prime Minister Bruce Golding's approval of the merger in August overturned.

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