Brussels, 16/07/2003 (Agence Europe) - The European Commission has imposed a fine of EUR 10.35 million on Wanadoo Interactive a 72% owned subsidiary of France Télécom, for abuse of a dominant position in the ADSL-based Internet access services sector. Investigations began in September 2001 on the basis of information obtained as part of the sector enquiry into local loop unbundling and the initial communication of complaints send three months later. Following inspections carried out in April 2002 at the company, a second communication of complaints was addressed to it. The Commission now concludes that Wanadoo marketed its ADSL services known as Wanadoo ADSL and eXtense at prices which were below their average costs between the end of 1999 to October 2002. Wanadoo suffered substantial losses up to the end of 2002 as a result of this practice. Wanadoo's policy was deliberate, since the company was fully aware of the level of losses which it was suffering and of the legal risks associated with the launch of its eXtense service. According to in-house company documents, the company was still expecting at the beginning of 2002 to continue selling at a loss in 2003 and 2004. This practice restricted market entry and development potential for competitors, which were unable to withstand the significant losses involved in launching their products at the same prices. From January 2001 to September 2002, Wanadoo's market share rose from 46% to 72%, on a market which saw more than a five-fold increase in its size over the same period, while their closest competitors held no more than 10% of the market and Wanadoo's main competitor had completely disappeared. The abuse came to an end in October 2002, with the entry into force of new wholesale prices charged by France Télécom, more than 30% down on the previous prices charged. France Telecom formerly supplied all Internet access providers (including Wanadoo) as it held almost 100% of ADSL wholsesales. Since then the market has developed more rapidly and in a more balanced way between the different competitors. Although the abuse has been discontinued, the Commission stressed that it was important to sanction Wanadoo because of the risk of the abuse being repeated and indicated that these kind of investigations would begin in other Member States.