Spain’s newly-formed competition regulator, the CNMC, has opened proceedings against Telefonica and its smaller rival Yoigo due to concerns over a network sharing agreement they signed in August.
The pact – which gives Telefonica use of Yoigo’s 4G…
Spain’s newly-formed competition regulator, the CNMC, has opened proceedings against Telefonica and its smaller rival Yoigo due to concerns over a network sharing agreement they signed in August.
The pact – which gives Telefonica use of Yoigo’s 4G network in exchange for giving the Teliasonera subsidiary access to its fixed-line network – has drawn the ire of competitors Vodafone and Orange Spain, which have filed complaints.
The CNMC said the deal may be in violation of Article 1 of the country’s antitrust act, without specifying which part of the article it suspects the sharing agreement could be in breach of, a spokesperson for the regulator said.
Article 1 focuses on collusion. It prohibits any agreement or efforts that may prevent, restrict or distort competition in a market.
The statute covers issues such as price fixing, the limiting or controlling of distribution, giving preferential treatment to one of your competitors over another, and conditions in contracts that impede competition.
The authority has 18 months to investigate the matter and could issue sanctions if the operator’s actions are found to be unfair.
The CNMC is a super regulator formed in October that absorbed the Spain’s antitrust, telecoms and energy watchdogs, alongside other, smaller regulatory bodies.
