Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC decision not to pursue abuse of dominance complaint against French telecom company upheld, (Oct 16, 2013)

By Jeffrey May, J.D.

The General Court of the European Union in Luxembourg will not disturb a decision of the European Commission (EC) not to pursue an abuse of dominance action against France Telecom, the country’s incumbent telecommunications company, over its allegedly discriminatory pricing practices. Today the court upheld the EC’s July 2010 decision not to proceed with a complaint on the grounds that the European Union lacked sufficient interest in pursuing an investigation of the alleged infringements, the EC announced (Vivendi v. Commission, Case T-432/10).

Vivendi, which provides Internet services in France, filed a complaint in 2009 with the EC, objecting to the conduct of France Telecom. Vivendi contended that France Telecom, which owns the local loop or the final telecommunications connection to customers’ homes and businesses, demanded an excessively high price for the provision of its wholesale services relating to access to that local loop. France Telecom alleged charged the high prices to drive up competitors’ costs in market for high-speed Internet access and the telephone subscription market.

The EC decided not to bring a complaint against France Telecom over the challenged practices. Vivendi brought an action for annulment of the EC’s decision.

According to the court, the EC was justified in rejecting a complaint where the possibility of establishing proof of any infringement on the part of France Telecom was very limited. The court noted that the EC can rely on regulatory actions of national competition authorities in reaching its decision on whether to issue a complaint.

Vivendi had unsuccessfully argued that the EC did not sufficiently investigate the alleged conduct and its impact on competition. Vivendi also questioned procedural decisions in the investigation, including restrictions on its access to documents.

Companies: France Telecom, Vivendi

News: Antitrust