SOME SAMPLES OF EU CASE LAW:

TELECOMMUNICATION - COMPETITION POLICY-
TREATY, ARTICLE 82 - 86 (*)

DOMINANT POSITION: ABUSE :
TELEFONICA SA : INTERNATIONAL DIALLING CODE : GIBRALTAR : REFUSAL TO RECOGNISE

By the contested decision the Commission rejected a complaint by the applicant filed on 31 October 1996 alleging that the Spanish telecommunications operator, Telefonica SA, had committed a series of abuses of dominant position contrary to Article 82 EC in refusing to recognise Gibraltar's International Dialling Code (‘350’) and insisting on acceptance of restrictive conditions for the exchange of automatic direct dial traffic between Spain and Gibraltar. The applicant later converted that complaint into a complaint under Article 86 EC, in conjunction with Articles 82 EC, 49 EC and 12 EC against Spain, alleging that Telefonica was acting under instructions from the Spanish Government, which claims sovereignty over Gibraltar. /

LAWTEL TEXT: Action by Gibtelcom Limited against the Commission 15/9/2004
Action for the annulment of a Commission Decision rejecting a complaint that Telefonica SA, had committed a series of abuses of dominant position.
Gibtelcom Limited claimed the Court should annul a Commission Decision rejecting Gibtelecom's complaint under Arts 86 and 82 of the EC Treaty, that Telefonica SA, had committed a series of abuses of dominant position, by refusing to recognise Gibraltar's international dialling code, and insisting on acceptance of restrictive conditions for the exchange of automatic direct dial traffic between Spain and Gibraltar. Gibtelcom argued that the Commission had erred in finding that Telefonica SA was not a public undertaking or that it enjoyed special rights. Further, Gibtelcom argued that Spain had infringed Directives 90/388, 97/33, 2002/21 and 2002/77. Gibtelcom also contended breach of its legitimate expectations, and failure of the Commission to act within a reasonable period.
2004/C284/48 C284 p.24 (Application)
(Case T-365/04) 2004/C 284/47) Official Journal of the European Union,
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WANADOO INTERACTIVE SA v COMMISSION

CFI
Action brought by Wanadoo Interactive S.A. against the Commission 2/10/2003
COMPETITION POLICY - INFORMATION TECHNOLOGY - TELECOMMUNICATIONS

FINE : ANNULMENT : PREDATORY PRICING : PACK EXTENSE : WANADOO ADSL : INTERNET : ART.82 EC TREATY

Action for the annulment of the Commission Decision imposing a fine on Wanadoo Interactive for infringing Art.82 EC Treaty.
Wanadoo Interactive brought an action before the Court claiming that it should:(1) annul the Commission's decision of 16 July 2003, imposing a fine of 10.35 million euros upon it;(2) in the alternative, withdraw the fine or reduce its amount.Wanadoo Interactive, which was a French limited liability company 99 % owned by Wanadoo SA, which was in turn owned as to 70.6 % by France Telecom, challenged the Commission's decision accusing it of infringing Art.82 EC Treaty by charging predatory prices for its Pack eXtense and Wanadoo ADSL services which did not allow it to cover its variable costs from March to August 2001 or its full costs from August 2001 until 15 October 2002, as part of plan aimed at pre-empting the market for high-output internet access services. On that basis, the Commission imposed a fine of 10.35 million euros.In support of its action, Wanadoo Interactive claimed that essential procedural requirements and in particular, its defence rights had been infringed. It also argued that the Commission had infringed Art.82 EC Treaty.
2003/C289/70 (Application) p.34
Judgment: case pending.
Application: Full Text (copyright European Communities)
Document No. ER0234003 - http://www.lawtel.com/~8cca8aa0edc04289afa422a0ec080ce7~/content/display.asp?ID=ER0234003&HL=Y&BK=Y

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Case T-59/03 - (1) TQ3
TRAVEL SOLUTIONS GMBH (2) TQ3 TRAVEL SOLUTIONS EMEA GMBH v COMMISSION
CFI
Action by TQ3 Travel Solutions GmbH and TQ3 Travel Solutions EMEA GmbH against the Commission 19/2/2003

COMPETITION POLICY - TRANSPORT - INFORMATION TECHNOLOGY - TELECOMMUNICATIONS
OPODO LIMITED: AIRLINES: ONLINE TRAVEL PORTAL: MERGER : COMPLAINT : ART.81 EC TREATY : ART.82 EC TREATY

Action for the annulment of the Commission Decision of 9 December 2002 rejecting the applicants' complaint against the notified joint venture setting up Opodo Limited.
The applicants were active in the travel agency business, especially for business passenger air transport services and connected services. On 3 November 2000, a joint venture agreement setting up Opodo Limited, an online travel portal created by nine of the largest European airlines, was notified to the Commission. Following the Notice published by the Commission setting out the undertakings proposed by the notifying parties and the intention of the Commission to clear the joint venture (see 2001/C323/03), one of the applicants filed a formal complaint against the creation of Opodo, alleging infringements of Art.81 and Art.82 EC Treaty. In the contested Decision, the Commission rejected the complaint of the applicant. The applicants therefore brought an action before the Court, claiming that it should annul the Commission Decision of 9 December 2002 rejecting their complaint in Case COMP/A.38321/D2-TQ3 Travel Solutions GmbH/Opodo Limited.The applicants submitted various arguments in support of their application including manifest error of assessment, an infringement of the Commission's obligation to investigate complaints with due diligence, with respect to the risk of coordination under Art.81(1) EC Treaty and with respect to discrimination under Art.82(2) EC Treaty.
2003/C101/85 (Application)
Judgment: case pending.
Application: Full Text (copyright European Communities)
Document No. ER0205903 http://www.lawtel.com/~8cca8aa0edc04289afa422a0ec080ce7~/content/display.asp?ID=ER0205903&HL=Y&BK=Y
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http://www.qlinks.net/quicklinks/competit.htm : http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/05/88

Mergers: Commission clears BT’s acquisition of Infonet

The European Commission has approved under the EU Merger Regulation the acquisition by British Telecommunications of Infonet Services Corporation, a US operator providing global telecommunications services to large multinational corporations. As the incremental share of the target company in these services is limited, the Commission considers that the operation will not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
With its acquisition of all issued and outstanding shares in Infonet Services Corporation (“Infonet”), British Telecommunications (“BT”) acquires control of the whole of Infonet.
The Commission investigated the competitive effects of the proposed transaction on the possible markets for global telecommunications services (“GTS”) that are provided to multinational corporations (“MNCs”). It found that the transaction would not change significantly the market conditions either on a global or on a European scale as Infonet brings only a minimal incremental market share to BT. The combined BT/Infonet will continue to face a number of competitors that are present in these markets. In addition, customers have indicated that they will still have the possibility to switch competitively to alternative GTS suppliers.
BT, a company organised under the laws of England and Wales, is a provider of telecommunications services on a worldwide basis. Its principal activities include local, national and international telecommunications services, internet products and services and IT solutions. Among other things, BT provides global telecommunications services to MNCs with global operations.
Infonet is a Delaware (US) company and its shares are listed on the New York Stock Exchange. Infonet’s main shareholders are Swisscom, TeliaSonera, KDDI, KPN, Telefonica and Telstra, which together hold approximately 97% of the voting rights. The rest of the shares is held by other, smaller shareholders. Infonet provides GTS to a range of MNCs on a global basis and (unlike BT) has a comparatively strong presence in the Americas and in the Asia Pacific region. Infonet provides its services through its worldwide network, including broadband, wired and wireless services, IP Video VPN, and integrated security services.
http://www.lawtel.com/~8cca8aa0edc04289afa422a0ec080ce7~/content/display.asp?ID=AC0105312&HL=Y&BK=Y
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R (On the application of (1)
T-MOBILE (UK) LTD (2) VODAFONE LTD (3) ORANGE PERSONAL COMMUNICATION SERVICES LTD) v (1) THE COMPETITION COMMISSION (2) DIRECTOR-GENERAL OF TELECOMMUNICATIONS (2003)
[2003] EWHC 1566

QBD (Moses J) 27/6/2003
TELECOMMUNICATIONS - INFORMATION TECHNOLOGY
OFTEL : TELECOMMUNICATIONS ACT 1984 : INTERCONNECTION DIRECTIVE : MOBILE PHONES : COMPETITION COMMISSION : CALL TERMINATION CHARGES : FAIR CHARGES : CAPS : LICENCE MODIFICATIONS : INTERCONNECTION : NETWORK OPERATORS : REVENUES : MOBILE MARKET : MARKET POWER : PRICE CONTROLS : PUBLIC INTEREST : CONSUMERS : ADVERSE EFFECTS : COUNCIL DIRECTIVE 97/33/EC : AMENDING DIRECTIVE 98/61 : FAIRNESS : REASONABLENESS : RATIONALITY

Challenge against recommendations of the Competition Commission that charges for call termination made by mobile network operators exceeded its assessment of a fair charge and should be capped and challenge to the imposition by the Director General of Telecommunications of such caps by way of licence modifications and proposals to continue such regulation after the new European regime fell to be implemented on 25 July 2003 were dismissed.
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