Telecos raided by EU antitrust regulators

Deutsche Telekom, Orange SA and Telefonica suspected of abusing dominant position in internet connectivity services

European Union antitrust regulators have raided Deutsche Telekom, Orange SA and Telefonica on suspicion that the companies may have abused their dominant position in Internet connectivity services.

The EU Commission said today it raided the offices of some telecoms providers in several EU countries on Tuesday but did not identify the companies, in line with its usual policy.

Deutsche Telekom and Orange SA confirmed the raid. A source familiar with the issue said Telefonica was also raided and that only three companies were targeted. Telefonica declined to comment.

“The Commission has concerns that the companies concerned may have violated EU antitrust rules that prohibit the abuse of a dominant market position,” the EU executive said in a statement.

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“Internet connectivity ... is crucial for the functioning of the internet and for end users’ ability to reach Internet content with the necessary quality of service, irrespective of the location of the provider,” it said.

KPN and Belgacom said they were not raided.

Companies can be fined as much as 10 per cent of their global turnover for breaching EU antitrust rules.

Reuters