The EU Commission adopts a decision against Spanish incumbent telecoms operator for abuse of its dominant position in the broadband market (Telefónica)

"Margin squeeze in the Spanish broadband market: a rational and profitable strategy"* On 4 July 2007, the European Commission adopted a decision against the Spanish incumbent telecoms operator Telefonica for a very serious abuse of its dominant position in the Spanish broadband market [1]. The fine imposed on Telefonica amounted to €151 875 000. The Commission found that Telefonica imposed unfair prices in the form of a margin squeeze between the wholesale prices it charged to competitors and the retail prices it charged to its own customers from 2001 to 2006. In so doing, Telefonica weakened its competitors, making their continued presence and growth in the market difficult: competitors were forced to make losses if they wanted to match Telefonica‘s retail prices. This resulted in

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Authors

  • DG JUST (Brussels)
  • OECD - Competition Division (Mexico City)

Quotation

Katja Viertiö, Iratxe Gurpegui, The EU Commission adopts a decision against Spanish incumbent telecoms operator for abuse of its dominant position in the broadband market (Telefónica), 4 July 2007, e-Competitions July 2007, Art. N° 36112

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