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Image header Agence Europe
Europe Daily Bulletin No. 8600
Contents Publication in full By article 22 / 39
GENERAL NEWS / (eu) eu/court of 1st instance

Wanadoo Interactive challenges European Commission's 10.35 millions fine for abuse of dominant position

Luxembourg, 05/12/2003 (Agence Europe) - The French company Wanadoo Interactive S.A is challenging the European Commission's decision of last 16 July imposing a fine of EUR 10.35 million for abuse of dominant position, until October 2002, in the market for broadband internet access (see EUROPE of 17 July 2003). Wanadoo Interactive feels that the Commission, in its decision, violated the principal according to which an infringement can only be attributed to the entity that committed it. However, the Commission blamed some elements on the France Telecom group over which neither Wanadoo Interactive nor France Telecom presented their observations. France Telecom and Wanadoo Interactive are two distinct entities, it asserts. The capital of Wanadoo Interactive S.A. is 99% owned by Wanadoo S.A., itself 70% owned by France Telecom.

Wanadoo Interactive is also challenging the Commission's implementation of the 'predation test' which neglected the 'highly competitive' context of the market. The Commission accused it of having infringed Article 82 of the EC Treaty (ex art 85 on the abuse of a dominant position) by practicing predatory pricing for its Pack eXtense et Wanadoo ADSL services which, for the Commission, did not allow it to cover its variable costs, from March to August 2001, or its full costs from August 2001 or October 2002.

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