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EU: Commission formally asks Austria to change broadband price rules

By  |  November 27, 2013

The European Commission has formally requested Austria’s telecommunications regulator, the TKK, to either withdraw or amend its regulations that control how much dominant broadband operator A1TA can charge rivals.

The Commission first warned Austria last July that the proposed rules may not be compatible with EU competition law. Further, the Commission found that the regulations could potentially create artificial barriers to the broadband market.

TKK plans to regulate how much A1TA can charge for wholesale broadband services to its competitors. The price cap, the Commission found, results from a margin squeeze test and not the assessment of underlying costs.

The regulator said that after a three month probe, it remains convinced that TKK’s rules are anticompetitive and not compatible with EU law.

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