Brussels, 15/10/2014 (Agence Europe) - Following an in-depth investigation which was first opened in 2009, the European Commission decided on Wednesday 15 October to fine Slovak Telekom nearly €39 million for abuse of dominant position between 2005 and the end of 2010 at least, on the Slovakian broadband market. As parent company exercising a decisive influence, Deutsche Telekom also comes in for its share of the fine as it is deemed to be jointly responsible. It will also have to pay an additional fine in the region of €31 million, set high enough to be a deterrent as well as a punishment, as this is not a first offence for Deutsche Telekom, which came under fire in 2003 for similar behaviour on the broadband markets in Germany.
Slovak Telekom offers, amongst other things, fixed broadband services on traditional metal cable telephone lines and on fibre-optic networks. In August 2005, following a request by the Slovakian telecommunications regulation authority, Slovak Telekom published the conditions under which it would allow other operators to access its unbundled local loops. These conditions, the Commission explains, were such as to make this access unacceptable and delayed or prevented other operators from entering the retail broadband services market in Slovakia.
Slovak Telekom also set access prices for its local loops and its retail prices at levels such that they would have caused losses to its competitors if they wished to sell broadband services to retailers at retail prices corresponding to those offered by Slovak Telekom.
With 51% of the shares of Slovak Telekom, Deutsche Telekom is its main shareholder and has a number of special rights, such as the right to appoint the majority of the members of the board of directors and to be notified of all management issues. Deutsche Telekom could therefore be held to have a decisive influence, particularly due to the overlaps within management-level staff and the influence on the decision-making process within Slovak Telekom. It is therefore jointly liable for the infringement alongside Slovak Telekom. (EL)