Telefonica could be fined up to EUR150m by EU

4 Jul 2007

According to a report filed by Bloomberg today, European antitrust regulators will fine Telefonica as much as EUR150 million (USD204 million) for abusing its dominance in the provision of broadband internet access. The European Commission in Brussels is expected to accuse Telefonica of charging wholesale rates that are too close to retail prices, preventing rival ISPs from making a profit. The fine is likely to be between EUR100 million and EUR150 million, according to unnamed sources, several times larger than previous antitrust penalties against telcos. The commission levied fines of EUR12.6 million against Deutsche Telekom and EUR10.4 million on France Telecom’s Wanadoo unit in 2003 for abusing their dominance in local telephony and internet access markets.

Spain, Telefonica