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Spain: EC warns watchdog to change broadband price-fixing proposal

 |  October 28, 2013

The European Commission has reportedly sent a notice to Spain’s competition regulator the CNMC over the watchdog’s planned price-fixing of broadband services for telco giant Telefonica.

The CNMC, which absorbed Spain’s telecommunications authority the CMT, will be required to either amend or abandon the proposal to lower prices charged to competing companies to use Telefonica’s network. The proposal was first developed by the CMT.

In response to the regulation, however, EU watchdogs announced Wednesday that the CNMC’s proposal “still lacks transparency…as CNMC failed to justify in detail the price levels set.” The Commission also warned that it would take legal action if changes to the telco regulation are not made.

According to reports, the EU first warned the telco authority last June that its proposals did not align with EU competition rules.

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