Telefónica Faces EU Fine For Broadband Bullying

Spanish telecoms giant Telefónica is to be fined by the European Commission for abusing its dominant position in the domestic broadband market. According to a report in the Financial Times, the move has been confirmed in a draft decision, which is due to be approved by the Commission at a meeting on July 4. This follows the issuing of formal charges against the group in 2006. Under European legislation, the Commission's antitrust body can impose a fine of anything up to 10% of Telefónica's global revenues. Although the punishment is unlikely to be so severe, Competition Commissioner Neelie Kroes has increased the fines for antitrust abuses since taking office in 2004. In 2006, the Commission imposed fines totalling EUR1.85bn, a figure that is likely to be exceeded this year.

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