Spain’s Supreme Court has cancelled Telefonica’s E57m fine, it has been revealed.
Speaking to TelecomFinance, a source close to the company said the Spanish incumbent had received confirmation in April 2010 that the fine was to be withdrawn, but did not…
Spain’s Supreme Court has cancelled Telefonica’s E57m fine, it has been revealed.
Speaking to TelecomFinance, a source close to the company said the Spanish incumbent had received confirmation in April 2010 that the fine was to be withdrawn, but did not make this public because of complexities surrounding talks to acquire Portugal Telecom’s stake in Vivo, the Brazilian mobile company.
During the months following the Supreme Court’s decision, Telefonica was involved in heated negotiations to buy Vivo, facing strong resistance from the Portuguese government, which holds a golden share in Portugal Telecom.
The EU later enabled an acquisition to go ahead and the stake was sold last month for a reported E7.5bn.
The Telefonica source added that it was clear its E57m fine was likely to be dropped as early as 2007.
The fine, which was imposed by Spain’s Court for the Defence of Competition (TDC) in 2004, centered on allegations from Astel, the Spanish alternative operators’ association, which claimed Telefonica hindered customers’ pre-selection of operators.
