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Spain: Telefónica attempts to escape fine for ‘breach’ of responsibilities

By  |  May 14, 2018
Spain: Telefónica attempts to escape fine for ‘breach’ of responsibilities

Spanish telecommunications company Telefonica announced that it will appeal the fine of €8.5 million euros that the National Commission of Markets and Competition (CNMC) has imposed on it over the breach of regulatory obligations established for its wholesale markets.

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     “Telefónica will appeal the sanction because it understands that the resolution is illegal and unjust and was unpredictable in light of the specific circumstances of the contest analyzed,” sources at the telecommunications operator have reported.

    The CNMC issued a fine of €8.5 million euros to Telefónica since, in accordance with the obligations imposed on the company as a result of its position as an operator with significant market power, it is prohibited from carrying out any anti-competitive practices, such as unwarranted price reductions. The specific case that led to the CNMC’s actions goes back to a contract for the provision of telecommunication services for the government of the Basque Country, previously provided by Euskaltel.

    Euskaltel, which had been a service provider to the Basque Government for 14 years, complained to the CNMC that the offer presented by Telefónica in this contest was not replicable. At the same time, Telefónica recalls that Euskaltel was discarded from the initial rounds of the tender for not complying with technical requirements, for which reason it was the only operator to present a bid.

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