DT probed for suspected abuse of dominant position

German daily Frankfurter Allgemeine Zeitung reports that the Federal Cartel Office (FCO) has initiated proceedings against incumbent telco Deutsche Telekom (DT) for alleged abuse of its dominant position. According to the report, the antitrust authority has received a number of complaints from telecoms operators which have stated that the Bonn-based company has been offering a wholesale DSL service, known as ‘Wholesale Internet Access’, at a price lower than the costs incurred to provide the service, which the alternative operators claim impedes competition. DT has reportedly refuted the claim, responding that the price gap between IP bitstream access and its Wholesale Internet Access product is appropriate and that competition in the market has not been compromised. A decision from the FCO regarding the investigation is expected in several months following further evaluation of the evidence.