Esat BT will file a legal suit today in the High Court seeking an expedited judgment in a €100 million damages case against Eircom.
It will argue that the firm has failed to comply with a court order for it to prepare a defence in the case, which alleges that Eircom has engaged in anti-competitive behaviour.
The action involves a claim by Esat BT that Eircom offered illegal price discounts to firms and some high-end residential users to boost its market share between 1999 and 2002.
The Commission for Communications Regulation (ComReg) has already investigated Eircom's practices and found the firm was supplying "off-book" prices on some voice products to users.
By supplying "off-book" prices - charges not agreed by the telecoms regulator - Esat BT argues Eircom could win business from its rivals by bidding for contracts at levels below the publicly stated regulated prices.
Normally, ComReg agrees and monitors Eircom's prices because it is a dominant firm within the telecoms sector.
Last year when ComReg issued its decision, Eircom chief executive Dr Phil Nolan put it down to a systems error and said that was "the end of the matter".
But Esat BT sued for damages in March 2003 and earlier this year, Esat claims Mr Justice Kearns ordered Eircom to file its defence to the allegations no later than three weeks after Esat BT provided it with a statement of particulars on its case.
Esat BT says the deadline for the filing of these defence documents passed earlier this week. Today, it will ask Mr Justice Kearns to fast track the case, which it believes Eircom is delaying.
An Eircom spokeswoman said yesterday it had not submitted defence documents because Esat BT had not pleaded its own case properly yet. Eircom would defend the case vigorously if Esat BT was able to do so, she added.
Esat's most recent court submission on the case alleges: "By engaging in the practice of off-book pricing, and by doing so in a clandestine manner, the defendant had acted to the advantage of its own position in the market and thereby restricted the plaintiff competing with it."
Mr David Taylor, Esat's director of regulatory affairs, told The Irish Times yesterday that Eircom's practices had resulted in significant damages to Esat BT's business and brand.
"We'd have to be talking about damages of almost €100 million due to the scale and length of time of the practice," said Mr Taylor, who indicated the firm had reluctantly taken a case.
Meanwhile, it is understood ComReg is investigating whether Eircom continues to engage in anti-competitive behaviour. ComReg officials recently visited Eircom's offices in St Stephen's Green and confiscated certain documents. The confiscation was made despite Eircom's decision in August to appoint an independent auditor on "off-book pricing".
If ComReg finds Eircom has continued to offer illegal price discounts to its customers, the regulator could penalise the firm.
