ÚOHS imposed the fine 205 million CZK upon the Český Telecom company

2006-10-26
The Chairman of the Office for the Protection of Competition Martin Pecina imposed by his decision of 24th November 2005 the fine amounting to 205 million CZK (approx. 7,1 million €) upon the company Český Telecom (hereinafter referred to as “ČTc”) for infringement of the Article 82 of the EC Treaty.

ČTc offered from 2002 to its end – customers (to which belong households, small undertakings and customers using the ISDN) unregulated price plans that comprise a monthly lump – sum payment for a lease of telephone station an unoparable part of which are call credits or free minutes for „free“ calling (calls up to the level of such a credit are perceived by the customers as a free – provided performance, for they are not charged separately to them).

The ČTc also offered a service called „the Internet Express“ in addition to that a customer obtains a „Universal type“ price plan at an advantaged price of the monthly lump – sum payment and at the same time a customers obtains a lower price for a minute of call payment, respectively an uniform price of 9.90 CZK (excluding the value – added tax) for the first hour of calling is charged to the customers (such a possibility is not available to those customers who use other price plans).

ČTc by this tying of services impeded the development of competition and created barriers to the entry of new operators to the market, the development of current alternative operators and limited the consumers‘ possibility of obtaining services of the highest possible quality at a competitive price.

The fine amounting to 205 million CZK is the highest one imposed by the Office on the single company in the II. instance. The final decision is the first direct application of the Community competition law by the Office.

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