The Hungarian Competition Authority fines telecom incumbent for margin squeeze in fixed telephone market (Magyar Telekom)

On January 22, 2004, the Hungarian Competition Office (the “HCO”) issued a ruling which determined that Magyar Távközlési Rt. [1] (“MATAV”) infringed the provisions of Hungarian competition law regarding the abuse of its dominant position by applying wholesale and retail tariffs that led to a margin squeeze. The HCO imposed a fine of HUF 70,000,000 (approximately EUR 280,000) on MATAV. Background MATAV, a Deutsche Telekom subsidiary, is the largest telecommunication incumbent in Hungary, with its service area representing 70% of the country and providing services to 72% of the population. Its subsidiaries provide, inter alia, retail mobile telephony, broadband internet and cable television services. Upon the coming into force of the old communications act as of December 23, 2001, the full

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Attila Komives, Tünde Gönczöl, The Hungarian Competition Authority fines telecom incumbent for margin squeeze in fixed telephone market (Magyar Telekom), 22 January 2004, e-Competitions January 2004, Art. N° 14763

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