- January 6th, 2012
- Dafiq Hussein
Spain’s antitrust regulator, the National Commission Competition (CNC) has opened disciplinary proceedings against Orange, Telefonica and Vodafone. This comes on the back of accusations that the firms have been abusing their dominant positions.
CNC announced that they have opened legal proceedings against the operators after a complaint was filed suggesting that the firms were squeezing out the profit margins of virtual mobile operators that do not own their own network.
CNC released a statement earlier this week: “The complaint alleges that the operators have committed an abuse of their dominant positions, individually or collectively, by consistently narrowing the operating margins for MVNOs when setting prices for wholesale services…and retail prices for mobile call services, especially in the business segment.”
CNC then added that they would want to ensure that the probe is closed within 18 months. This is the latest in global telecoms investigations that have popped up in recent weeks and months.
Of course there is still the ongoing case in India that we have blogged about as well. BT also sued Google recently due to their belief that they infringed on six BT patents. Furthermore, there have been antitrust probes in China and Dutch price fixing scandals. It seems that the world of telecommunications is one that is constantly plagued by scandal and investigations.
Such investigations are undoubtedly costing the firms quite a lot money, whilst also shrouding the companies in negativity, let’s hope the firms do not need to raise their international calling charges as this will then negatively impact any customers looking to make cheap calls abroad. Charging customers more for the use of services will not be a particularly smart business move of course.
It will be interesting to see how such investigations turn out, but of course, as is so often the way, the outcome of this particular investigation is likely to drag on!