On 29 September 2009, the College of Competition Prosecutors announced that it had submitted a report to the Competition Council alleging that Belgacom had abused its dominant position by engaging in a margin squeeze in relation to its fixed telephony activities. The margin squeeze would result from Belgacom's ‘Happy Time’ offer, an option given to retail fixed line customers to call for free to other fixed line customers during off-peak hours. This offer, combined with Belgacom's tariffs on wholesale markets, would not allow alternative operators to obtain reasonable profit margins.
Following the submission of the report, Belgacom now has a chance to respond to the allegations of the College of Competition Prosecutors and will be heard by the Competition Council which will determine whether an infringement has indeed been committed and what sanctions should be imposed. The investigation of the College of Competition Prosecutors is the result of a complaint by Tele2, a competing fixed telephony provider.
In May of this year Belgacom was fined € 66 million by the Competition Council for practising a margin squeeze in respect of professional customers with specific requirements for mobile telephony (Belgian competition law report 2009/Q2).