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Top EU court upholds Telefonica's EUR 152 mln antitrust fine
2014-07-10 14:59:00| Telecompaper Headlines
(Telecompaper) The European Court of Justice (ECJ) has upheld a fine of EUR 151.9 million imposed on Telefonica for abusing its dominant position in the Spanish broadband market from 2001 to 2006. Telefonica had appealed an earlier decision by the General Court that it must pay the fine first imposed by the European Commission back in July 2007. "In today's judgment, the Court dismisses Telefonica's appeal in its entirety," said the ECJ in a statement, adding that the incumbent operator's behaviour had resulted in "potential anticompetitive effects that may have excluded competitors, who were at least as efficient as Telefonica, which is sufficient to establish that the practice of squeezing margins was abusive." The 2007 fine was the largest ever imposed on a telecoms operator in Europe and referred to Telefonica's conduct in the local broadband market between 2001 and 2006. The EC claimed Telefonica had deliberately charged regional and national wholesale rates to competitors that were too close to retail prices, thus forcing its rivals to make losses if they wanted to match Telefonica's prices. At the time the Commission said the size of the fine matched the "gravity and duration" of Telefonica's breach of EU law, which harmed competitors, consumers and businesses alike.
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Category:Telecommunications