Spanish Operators Facing Potential $2.4 Billion Fine
Spain's anti-trust regulator is reported to have found evidence of price collusion between the country's three main mobile phone operators - Vodafone, Orange and Telefonica Movistar. The Gaceta de los Negocios newspaper reported on their website this morning that the National Commission on Competition (CNC) sent its report to the operators and given them two weeks to respond to the allegations.
The report claims to have found that identical movements in their tariffs were based on collaboration between the operators.
If the report is upheld, then the CNC can impose fines of as much as 10% of the companies annual revenues. This could equate to around EUR1.5 billion (US$2.4 billion) in fines if implemented in full.
The operators have stated that they disagree with the findings, with Movistar saying that it was "startled" by the allegations. For its part, Orange expressed its "absolute rejection" of the report which it deemed "unjustified".
The investigation is based on a law change in 2007 which barred the operators from rounding up calls to the nearest minute, which resulted in all the operators having to revamp their tariffs.
Earlier this week, the head of the country's telecommunications regulator Reinaldo Rodriguez said that he expects Spanish mobile phone fees would to continue falling in 2008. In 2007, average mobile charges were EUR0.17 a minute, 6% less than the year before, the regulator said Tuesday in its annual report.
On the web: Gaceta de los Negocios
Posted to the site on 4th July 2008