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EU fines Spanish telecoms operator Telefonica |
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19:44, July 04, 2007 |
The European Commission on Wednesday announced a 151-million-euro antitrust fine against Spanish telecoms operator Telefonica.
The hefty fine was imposed since Telefonica committed a "very serious abuse" of its dominant position in the Spanish broadband market, the European Union's antitrust watchdog said.
The Commission found that from Sept. 2001 to Dec. 2006, the Spanish telecoms giant structured its wholesale and retail broadband prices at both the national and regional levels in such a way that the margin between them did not allow rivals to compete on the market without making losses.
"Through this so-called 'margin squeeze,' Telefonica insulated itself from the rigors of competition by making it impossible for alternative broadband suppliers to enter the market on a commercially-viable basis," said Neelie Kroes, European Commissioner for Competition Policy.
As a consequence of Telefonica's unfair practice, small businesses and consumers in Spain are paying about 20 percent more than the average for high-speed Internet access in the old 15 EU member states, the Commission claimed.
Source: Xinhua
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