Belgian Operator Fined for Market Abuses

Belgium's Competition Council has fined the mobile network operator, Proximus a total of EUR 66.3 million (US$92.6 million) for allegedly abusing its dominant market position. The fine covered actions the network operator carried out in 2004/5 to abuse its position as a subsidiary of Belgacom to squeeze out its competitors.

The Council reported that in 2004/5, the company charged lower termination rates to end users than it was charging to its competitor networks. The complaint was filed in 2005 by KPN's local arm, Base.

"Competitors were unable to propose prices to their clients for communications towards the Proximus network that were more interesting or even similar to the prices that Proximus could offer to its clients," the council said in a statement.

Proximus's parent company, Belgacom said that it would appeal against the fine, saying that it couldn't be accused by one regulator of selling services below cost, while also being accused by another of overcharging.

Posted to the site on 27th May 2009