Deutsche Telekom (DT) and its Slovakian subsidiary Slovak Telekom have been fined a total of EUR69.9 million (USD88.4 million) by European Union (EU) antitrust regulators for anti-competitive pricing in the country’s broadband market between 2005 and 2010, Reuters reports. The Slovak operator was found guilty of charging excessive wholesale rates to rival firms, making it impossible for them to make a profit from their own retail tariffs. Slovak Telekom and DT have been hit with a EUR38.8 million joint penalty, while the parent company has been handed a separate EUR31.1 million fine as this was its second such offence.
‘Slovak Telekom did not only refuse to give access to its unbundled local loops under fair conditions. It also pursued a margin squeeze policy which made it impossible for alternative operators to use its legacy telephone network infrastructure without incurring a loss,’ European Competition Commissioner Joaquin Almunia said in a statement. DT has a 51% stake in Slovak Telekom, while the remainder is held by the Slovak government.