Europe accuses Wanadoo of predatory ADSL pricing
Savage undercutting - just what we all want for Christmas...
The European Commission is investigating France Telecom's Wanadoo Interactive, accusing it of using price breaks from its parent to price high speed connections below cost, thus driving competitors out of business. The Commission notes that competitor Mangoosta closed in August, allegedly because of predatory pricing by Wanadoo.
How different from the alleged home life of our own dear BT, which gets accused of pricing ADSL too high. A Commission statement issued on Friday claimed that ADSL competitors without backing from France Telecom similar to Wanadoo's "are unable to withstand the price and cost pressure imposed and are in practice forced out of the market."
Wanadoo claims that its pricing matches that of the competition and of ADSL providers in other European countries, that it doesn't get price breaks from France Telecom, and that price rises would stall ADSL growth in France. In the past France Telecom has come under pressure from the French Government for not rolling out ADSL fast enough, so clearly you can't please some people. But we await the result of the current investigation with interest. ®