Feeds

EC to crunch Wanadoo's numbers

Predatory pricing allegations provoke investigation

  • alert
  • submit to reddit

The essential guide to IT transformation

The European Commission is to keep a close eye on Wanadoo's accounts until the end of 2006, following allegations of predatory pricing against the French ISP.

According to the FT, the Commission has ordered Wanadoo to hand over accounts for surveillance in order to prevent any further abuse of its dominant position.

The newspaper states it has seen an unpublished report by the Commission which reveals that the ISP was engaged in anti-competitive trading.

Last July, the EC slapped a €10.35 million fine on Wanadoo for predatory pricing on consumer ADSL services in France.

An investigation found that the France Telecom-owned ISP deliberately set prices on broadband products at lower than cost. This restricted the opportunities of rivals to enter the market and constituted an abuse of a dominant market position, the Commission ruled.

The matter is the subject of an appeal by Wanadoo.

A spokeswoman for France Telecom declined to comment on the report, except to say: "Wanadoo appealed against this decision in October 2003. We have nothing more to say than what was written in our press release from July 16, 2003, that we published after the decision."

In that statement the ISP said: "Wanadoo deeply regrets the decision announced today by the European Commission, based on what Wanadoo believes is a flawed economic analysis. It constitutes a bad signal for all businesses wishing to participate, invest and take risks in developing broadband Internet."

In December last year, AOL France complained to French competition authorities over allegations that Wanadoo was engaged in predatory pricing.

AOL France boss Stephane Treppoz said that Wanadoo was flogging broadband at a price lower than the wholesale cost of the service. ®

Related Stories

AOL France to challenge Wanadoo over 'predatory pricing'
EC fines Wanadoo €10m for predatory pricing

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?