Deutsche Telekom cleared of overcharging Kabel Deutschland

A court In Frankfurt has cleared Deutsche Telekom of overcharging Kabel Deutschland for the use of the German operator’s cable ducts, Reuters reports.

 Kabel Deutschland had accused Deutsche Telekom of overcharging for the use of its pipe network, which houses phone and internet lines, and was seeking a repayment of €273 million, plus interest.

The District Court in Frankfurt said today that Deutsche Telekom does not have a dominant market position in the area and it could not be established whether the company was charging too much.

“Because the suit also sought a declaratory judgment covering the future, the economic value of the case is in the billions,” said Arne Hasse, Frankfurt court spokesperson.

The German cable operator had also requested that initial annual charges for use of these cable ducts were reduced by two thirds from €100 million.

A Kabel Deutschland spokesperson told local reporters that the company is likely to appeal against the decision.

Kabel Deutschland is in the process of being bought out by Vodafone, and earlier this month, the acquisition was approved by the cable operator’s supervisory and management boards.