TDLC fines CTC for broadband access restrictions

31 Oct 2006

In a landmark ruling, Chile’s Free Competition Defence Court (TDLC) has fined Telefonica CTC CLP581 million (USD1 million) for blocking access to third party voice over Internet protocol (VoIP) telephony providers. The court ruled that CTC’s policies hindered fair competition and that it must eliminate contract clauses that ban VoIP. ‘Telefónica CTC committed a restrictive practice against free competition, with the goal of limiting the entrance of Voissnet and other potential competitors to the telephony services market,’ concluded the court. Although Telefónica CTC will most likely appeal the decision in the Supreme Court, the ruling clears the path for VoIP service providers to begin operating.

Chile, Telefonica Moviles Chile (Movistar)