EU fine looming for Polish telecom incumbent TP, Brussels warns

Mar 1, 2010, 13:50 GMT

Brussels - Poland's biggest telecom company Telekomunikacja Polska (TP) risks a fine for anti-competitive behaviour in the internet broadband market, the European Commission warned on Monday.

The European Union executive has extensive powers over antitrust matters, and can impose heavy penalties on companies which are deemed to break the bloc's single market rules.

In a statement, the commission said it sent a so-called statement of objections (SO) to TP expressing the 'preliminary view that (the company) has abused its dominant position by refusing to supply remunerated access to its wholesale broadband services'.

'TP has eight weeks to reply to the SO, and will then have the right to be heard in an oral hearing. If the preliminary views expressed in the SO are confirmed, the commission will require TP to cease the abuse and may impose a fine,' the statement adds.

According to EU rules, former telecom monopolies - known as incumbents - are supposed to let to their competitors use their network and services, as long as they pay a fee.

But the commission found out that TP forced competitors 'to undergo a lengthy and burdensome process' to receive the privilege and recurred to 'delaying tactics and unreasonable conditions' to deter applications.

Monday's findings are the results of an antitrust investigation that the commission launched on April 17, 2009.

The EU executive defended its actions, stressing that 'market opening and competition allow greater choice of services and more competitive prices for consumers as well as the creation of more companies and job opportunities'.