THE suit filed by telecoms giant Digicel challenging the legal standing of the Fair Trading Commission (FTC) to oppose its merger with telecoms provider Claro will be heard in the Supreme Court on February 28.

The new date was set when the parties appeared in court this week. The adjournment allows for telecoms provider LIME, which joined in the matter as an interested party, and the others, to prepare written submissions for the next court date.

If the Digicel application is successful the FTC's opposition to the merger — which comes into effect on March 1 when Claro will cease operating in Jamaica — will be thrown out.

The FTC, in December, 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.

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

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.

The FTC suit follows a failed attempt in the Supreme Court by LIME to have then Prime Minister Bruce Golding's approval of the merger in August 2011 overturned.

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