EU Court Upholds EUR12.6 Million Antitrust Fine on Deutsche Telekom
LUXEMBOURG -(Dow Jones)- A European court has upheld a EUR12.6 million fine on Germany's Deutsche Telekom for discouraging competitors access to its networks.
Europe's executive body, the European Commission, criticized the lack of competition in the German market for high-speed Internet which relies on "local loop" access. A local loop is the connection between a customer and the nearest network access point.
The commission imposed the EUR12.6 million fine in 2003. It had found that, between 1998 and 2001, Deutsche Telekom had charged competitors higher wholesale fees for access to its local loop than the retail price it charged its own subscribers for their fixed lines.
This was discouraging potential competitors from entering the market, it said.
Deutsche Telekom appealed the fine. The appeal was heard by the European Court of First Instance, Europe's second-highest court.
"By charging its competitors prices higher than the retail prices which it charged its own end-users, DT abused its dominant position," the court said in its judgment.
-By Mike Gordon, Dow Jones Newswires; +352 691 180 766; mgordon.dowjones@gmail.com
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Posted to the site on 10th April 2008