The European Commission has fined the Spanish incumbent telecoms operator Telefónica over EUR 151 million for abuse of its dominant position in the Spanish broadband market. Telefónica imposed unfair prices in the form of a margin squeeze between the wholesale prices it charged to competitors and the retail prices it charged to its own customers. Accordingly, competitors were forced to make losses if they wanted to match Telefónica's retail prices. The sanction appears to contradict the Telecoms Market Commission (CMT), Spain’s national regulator, who had approved Telefonica’s rates. However, allegedly only 30 per cent of wholesale prices were regulated by CMT, leaving Telefonica’s remaining prices free from regulation. Moreover, CMT based its approval on forecasts provided by Telefonica, which allegedly differed from the company’s own business plan and cost analysis. Apparent compliance with national regulatory frameworks will not provide companies with a cover for abusive practices.