Brussels, 25/06/2014 (Agence Europe) - On Wednesday 25 June, the Court of Justice of the European Union upheld a ruling against Portugal for failing to respect a procedure concerning the universal telecommunications service, but reduced the fine handed down, in view of the financial difficulties suffered by the country, which has been hard hit by the crisis.
In a judgment (case C-76/13), the Court ordered Portugal to pay €3 million and a penalty payment of €10,000 euros for failing to appoint universal telecommunications service providers, long the exclusive domain of Portugal Telecom. All of the European member states had until 2003 to select various universal telecoms service providers, an obligation which Portugal failed to fulfil, leaving “exclusive economic operations” in the hands of Portugal Telecom, the former public operator. Following a number of warnings, the Commission brought the matter before the European courts in 2013, to force Lisbon to comply with the rules. The Court ruled in favour of the Commission and described the matter as a serious infringement, with negative consequences both for consumers and companies which may have been interested in providing the universal service. However, Portugal launched tendering procedures in late 2012 to remedy the situation, which has been taken into account.
The Court noted that Portugal's payment capacity had decreased in the context of the economic crisis.
The appointment of a universal telecommunications service provider “was one of the measures laid down in the rescue plan for Portugal and it has been applied”, was the reaction of Portuguese Secretary of State for Transport and Communications Sergio Monteiro. Currently, this service is no longer provided by Portugal Telecom, but the operator Nos, which took over on 1 June 2014. “We are doing everything in our power to ensure that the penalty is not applied. The decision of the Court cannot be appealed against, but we are in dialogue with the European Commission”, Monteiro added. (LC)