Brussels, 27/06/2007 (Agence Europe) - On Wednesday, the European Commission decided to refer Germany to the European Court of Justice for breaking Community rules in the telecommunications sector. Despite repeated requests to do so, Germany has been unwilling to amend its new national telecoms law, which protects the dominant position of historic operator Deuthsche Telekomp. The law allows Deutsche Telekom effectively to exempt its fast internet access network (VDSL) from competition, the Commission says. Such “regulatory holidays” might be granted without consulting the Commission and regulatory authorities in other Member States. In the face of German unwillingness to move, despite several warnings last year when the telecoms bill had not yet been passed, on 26 February, the Commission decided to open a formal procedure, sending a formal notice, followed by a reasoned opinion on 3 May (see EUROPE 9419). The German law weakens the position of Deutsche Telekom's current competitors and makes it harder for new competitors to enter German markets, and also attempts to limit the discretion granted to the German telecoms regulator, Bundesnetzagentur, which is responsible for deciding whether or not to allow competitors access to markets, the Commission noted. The final step was taken today, with the referral of Germany to the Court of Justice. “We want to ensure Germany can benefit from a healthy, competitive and fully functioning market and encourage both competition and investment in broadband markets,” said Commissioner Viviane Reding. (il)