Telstra sues SAP over

Telstra sues SAP over


Following the recent closure of the Marketplace, co-owner Telstra is suing SAP AG's Australian unit for failing to disclose elements of its relationship with e-marketplace software company Commerce One Inc.

Telstra has filed a claim for unspecified damages in the Federal Court, charging SAP Australia with having made misleading and deceptive claims about its attitude to the carrier when negotiating the marketplace agreement in June, 2000.

The claim alleges that SAP told Telstra it had entered into a deal with Commerce One to jointly develop the next generation of the exchange engine, but failed to disclose any information suggesting that this would adversely affect its relationship with Telstra.

A spokesperson for Telstra confirmed the company was suing SAP Australia and that it was "currently in negotiations", but could make no further comment as the matter is subject to legal proceedings.

"We started the action a couple of weeks ago, and hope the matter does not reach the court stage."

SAP Australia was unavailable for comment.

News of the marketplace's closure was announced as SAP Australia revealed a lose of between A$5 million and A$10 million (US$2.5 million and $5 million) pretax in the 2000 calendar year.

Chief executive Chris Bennett said at SAP's E-Business Forum that the company had decided to close the B-to-B hub because market conditions had changed dramatically since it was launched.

SAP and Telstra spent more than US$9.75 million building the business portal which was launched in Australia, New Zealand and Asia.

Under the terms of the agreement, SAP provided the inter-enterprise applications through and Telstra provided the infrastructure and connectivity for hosting the marketplace solutions.

Eleven leading Australian companies, including Qantas Airways, National Australia Bank, American Express, Citibank and TNT had joined the portal.

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