The Slovak Competition Authority fines telecommunications company for margin squeezing in virtual private network market (Slovak Telecom)

Slovak Telecom (“ST”) was fined SKK 80,000,000 for margin squeezing in the Virtual Private Network services (VPN) market due to its dominant position in the upstream leased private lines market in which it had no competitors. The decision was based on ST's practice in one particular tender for VPN services held by Ľudová Banka, a.s. (“Bank”). It was found that one of ST's competitors had to count the extra costs incurred by leasing the private lines from ST in its price offer, while ST did not have to include such costs in its bid. The Antimonopoly Office of the Slovak Republic (the “Office”) held that such practice squeezed the competitor's

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Authors

  • Norton Rose Fulbright (London)
  • SauterRentsch (Prague)

Quotation

Juraj Neuwirth, Rudolf Rentsch, The Slovak Competition Authority fines telecommunications company for margin squeezing in virtual private network market (Slovak Telecom), 14 December 2005, e-Competitions Bulletin December 2005, Art. N° 21308

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