The Dutch subsidiary of Vodafone is suing KPN for €115m, claiming that the local incumbent has “seriously abused its dominant position” in the market. Vodafone Netherlands has alleged that the introduction of its fixed-line TV, broadband and telephone package – operating on KPN’s nationwide network – was delayed by KPN for three years until 2014, during which time KPN was able to launch its own comparable proposition.
The Dutch subsidiary of Vodafone (LSE:VOD) is suing KPN (AMS:KPN) for €115m (US$126m), claiming that the local incumbent has “seriously abused its dominant position” in the market.
Vodafone Netherlands has alleged that the introduction of its fixed-line TV, broadband and telephone package – operating on KPN’s nationwide network – was delayed by KPN for three years until 2014, during which time KPN was able to launch its own comparable proposition.
Formerly the state-owned monopoly, KPN has the Netherlands’ only nationwide telephone network and is obliged to offer rivals wholesale access on fair terms.
In a statement, Vodafone Netherlands accused KPN of abusing its dominant market position and is looking to recover €115m in damages from the court of justice in The Hague.
Rob Shuter (pictured), CEO of Vodafone Netherlands, said: “We hope that taking this legal action will help to rectify the harm caused by KPN’s actions and alter its future behaviour.”
Responding to the allegations, a KPN spokesperson said: “We do not recognise the picture outlined by Vodafone.”
Vodafone has taken similar legal action in other markets where it relies on incumbents to provide it with wholesale services.
It has been lobbying British regulator Ofcom to more stringently regulate BT’s infrastructure arm Openreach and would like to see a structural separation between the two. Ofcom is examining that possibility and Vodafone noted the regulator is also investigating Openreach for its use of loopholes to avoid penalties for the late installation of fibre-optic cables for business customers.
This month, Irish incumbent Eir has come under similar pressure. Vodafone Ireland, SKY, BT and Magnet entered into a formal dispute with Eir over how long it takes to carry out repairs, and local regular ComReg is looking at Eir’s governance model, which could lead to the separation of fixed infrastructure.
Vodafone has also taken action in Spain, Italy and the Czech Republic.
In its statement, Vodafone noted that in 2014 the European Commission fined Slovak Telekom and parent Deutsche Telekom €39m (US$49m) for its conduct in the Slovak broadband market, and Deutsche Telekom received an additional €31m (US$39m) fine as a repeat offender.
