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Image header Agence Europe
Europe Daily Bulletin No. 8853
Contents Publication in full By article 17 / 35
GENERAL NEWS / (eu) eu/telecommunications

Commission calls on Luxembourg to fully apply competition regulations

Brussels, 21/12/2004 (Agence Europe) - The European Commission has formally asked Luxembourg to comply with a judgement given by the Court of Justice on 12 June 2003 requiring it to apply correctly a 1990 Directive on competition in the markets for telecommunications services (90/388/CEE). Despite changes to its legislation, Luxembourg still retains a procedure for issuing rights of way which discriminates against competitors of the traditional operator, since they are not always able to obtain the permits they need to construct their own infrastructure alongside roads and railway lines. The formal request is in the form of a reasoned opinion, the second stage of the infringement procedure provided for in Article 228 of the EC Treaty. If Luxembourg continues to fail to comply, the Commission could refer the matter to the Court and ask it to impose a daily fine. Following an initial infringement procedure begun by the Commission, the Court of Justice ruled against Luxembourg in 2003, considering that the Luxembourg legal framework was ambiguous and contained insufficient safeguards to ensure non-discrimination. Luxembourg had already amended its legislation even before the Court pronounced judgement. However, the Commission argues that the new provisions are not enough to put an end to the infringement. In particular, the current rules do not clearly identify the authority in charge of issuing permits, particularly in the case of the railways.

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