PARIS - The French Competition Council also called Conseil de la Concurrence has slapped a fine of €534 million (£364 million) on the country's top three mobile operators after they were found guilty of market collusion for over five years.
Orange, SFR and Bouygues Telecom have been hauled by the competition authorities who said that the firms had caused "great damage to the economy." Orange, which is owned by France Telecom, has been ordered to pay €256 million, while Vivendi owned SFR is to shell out €220 million.
The other group Bouygues Telecom has been fined €58 million. Orange said that it would appeal the ruling, “The ruling, based on events that are now long past, has been handed down despite months of actions of all kinds seeking to discredit the telecommunications sector in France," the company said in a statement.
The Competition Council said that between 1997 to 2003, when the three companies were the only ones ruling the mobile market in the country, they had exchanged vital information amongst themselves and had kept each other updated on the number of new customers, "The council is of the opinion that, while the discussions did not concern the price decisions that they were to take, the exchange of information was of such a nature that it reduced the intensity of competition on the mobile telecommunications market," a statement issued by the council said. These companies had also entered into an agreement to keep their market shares steady and not indulge in serious competition, which the council deemed was unfair.
Bouygues Telecom, the smallest of the companies named in the suit said that it also plans to appeal the ruling.
Posted
on : Thu, 01 Dec 2005 20:20 GMT | General News
By : Mike Lawson
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