Spanish Competition Tribunal Rejects Price Squeeze Allegations in Relation to Mobile VPN Services
On December 20 and 22, the Spanish Competition Tribunal (Tribunal de Defensa de la Competencia, or TDC) dismissed three actions that were brought by Uni2 and WorldCom (both alternative fixed operators) against the three Spanish mobile operators (Telefonica Moviles, Vodafone, and Amena) for abuse of a dominant position. The complaints alleged that the three mobile operators applied a price squeeze on the corporate market segment and discriminatory pricing practices as regards mobile termination services. In particular, according to Uni2 and WorldCom, during the period of 2000-2002, the three Spanish mobile operators offered retail services to corporate clients (including pricing terms for fixed-to-mobile calls) that were lower that the wholesale call termination prices imposed on other telecommunications operators, and in particular fixed telecommunications operators. The factual issues in the three cases brought before the TDC against Telefonica Moviles, Vodafone, and Amena are slightly different, but the legal conclusions are essentially the same.
Antitrust and Trade Regulation
Date of this Version
Axel Desmedt and Pablo Charro, "Spanish Competition Tribunal Rejects Price Squeeze Allegations in Relation to Mobile VPN Services" (March 2005). Wilmer Cutler Pickering Hale and Dorr Antitrust Series. Working Paper 53.