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EU/Spain: Commission mulls veto of Spain’s telecom watchdog order

By  |  June 28, 2013

The European Commission announced Thursday its suspension of a proposal set forth by Spain’s telecommunications regulator, the CMT, which allows the nation’s dominant operator, Telefonica, to set prices of sold broadband services. According to the Commission, the proposal would determine prices based on a combination of both a cost model and Telefonica’s accounting data and benchmark; the result would be prices 50 percent higher than cost-efficient levels, said the watchdog. The proposal has been suspended over concerns the regulation is not in line with EU telecom policy and the rules’ potential negative effects on competition. The Commission sent a letter to the CMT, which now has three months to resolve the issue with the EU.

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