Brussels, 26/10/2011 (Agence Europe) - The European Commission sent statements of objections on Tuesday 25 October to telecoms operators Telefónica (Spain) and Portugal Telecom (Portugal), relating to an agreement concluded between them in July 2010 not to compete on the Iberian telecommunications markets. At this stage in the in-depth investigation launched in January 2011 under the terms of Article 101 of the TFEU (cartels and abuses of dominant position), the Commission believes that the aim of the agreement was to partition the market, resulting in potentially higher prices and less choice for consumers.
The agreement was concluded as part of Telefónica's acquisition of sole control over the Brazilian mobile operator Vivo, previously jointly owned by both parties. The non-compete clause was originally due to run from September 2010 to the end of 2011, but the two operators repealed it in February 2011, after the Commission opened antitrust proceedings. This does not erase the fact, however, that the agreement existed in first place. If an infringement is proved to have taken place, the parties will be liable to fines of up to 10% of their annual worldwide turnover. (FG/transl.rt)