Regulator to investigate Telefónica’s wholesale prices after Euskatel complaint

Spain’s markets regulator has started an action against Telefónica, claiming that the company has broken is obligations in wholesale markets.

The Comisión Nacional de los Mercados y la Competencia (CNMC, the National Commission for Markets and Competition) says that Telefónica “is prohibited from carrying out anticompetitive practices, such as price reductions contrary to sectoral regulation”.

The complaint arises from Telefónica’s outbidding of Basque operator Euskatel last year for services to the autonomous administration of the Basque Country.

The CNMC says that its analysis shows that “an efficient operator specialised in the business segment” would not be able to replicate Telefónica’s prices. A rival “would obtain a negative profitability by providing the services included in Telefónica’s offer through the use of wholesale offers available in the market”.

The CNMC said it would take up to a year to judge the case and said that starting the case “does not prejudge the final result of the investigation”.