TELECOMMUNICATIONS: COMPETITIVENESS COUNCIL FINES FRANCE TELECOM AND SFR.

• Position: Brief Article

On October 14, the Competitiveness Council announced fines worth Euro 18 million against France Telecom and Euro 2 million against SFR for anti-competitive pricing practices. This concerns special offers for calls made from fixed lines to mobile phones. The Council criticized both operators for making price cuts between 1999 and 2001, aimed at medium and large companies. These retail offers did not cover the costs of providing the services, in other words they were less than their cost price. As such, these practices hindered the emergence of competition in this market, according to the Council. Informed of the matter by the Professional Association TENOR (now known as ETNA), the Council did not however penalise Bouygues Telecom. In its view, this operator was not able to distort competition.

France Telecom reacted by questioning the basis of the fine, saying that it concerned matters that the Council had already...