CASE COMMENTS: UNILATERAL PRACTICES - EXCLUSIONARY ABUSE – RIVAL COST STRATEGIES
Exclusionary abuse : The French Competition Authority fines the dominant mobile telephony operator in La Reunion and Mayotte islands for having practiced unfair prices between online and offline call termination charges (SFR)
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The Authority's decision of June 13, 2014 concerns the practices implemented by SRR, a subsidiary of SFR, the dominant operator in the mobile telephony sector in Reunion and Morocco. The decision confirms the abuse of exclusionary conduct with regard to the differentiation of on net and off net termination rates (hereafter intra and inter networks) and rejects the allegations of a margin squeeze strategy. It results in a financial penalty of more than €45 million, the quantum of which has been reduced following the company's failure to contest the objections and its commitment to implement a compliance programme. This case enables us to clarify how a tariff
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