On May 10th, 2013, further to the business model “Open Access”, the Italian Antitrust Authority sanctioned Telecom Italia s.p.a to pay the amount of 103,794,000 Euro for the abuse of dominant position in the network infrastructure market.

At the end of the investigation, which began on June 23th, 2010, the Antitrust Authority found that Telecom Italia inhibited the access of its competitors to the infrastructure networks,  in the case of the provision of services both on the active line, and on not active line. In particular, the Open Access division of Telecom Italian did not acquire properly the requests of access to the networks issued by the OLOs, implementing a discriminatory behavior, which restricted the competition in the electronic communication market.

In addition, the Antitrust Authority proved that during years from 2009 to 2011, the pricing policy implemented by Telecom Italia regarding the big business customers had the effect to reduce the margins of competitors, because of the costs of access charged to other OLOs that restricted the competition in the retail market for the access services provided to non-residential customers.

Under the investigation carried on, the Antitrust Authority showed that Telecom Italia applied discount prices exclusively to customers, located in areas, open to the competition, because of the unbundling of the local loop, which have to recourse to procedures of selection for the appointment of electronic communication service and network supplier. In this regard, the Antitrust Authority disclosed that the Telecom Italy could afford to apply lower prices of retail services  to those business customers, without incurring in any loss, because of the higher wholesale rates charged to competitors.

Telecom Italian could appeal the resolution mentioned above, before the Administrative Court of Lazio, within 60 days from the notification of the resolution.

Source: Agcm