Telenor Appeals Decision From The EFTA Surveillance Authority

Telenor gets fined by EFTA

writer icon Vera P. Jensen     Telenor   |   Business     🕐 03. Jul. 2020

"We will review the decision thoroughly and are preparing to appeal the decision to the EFTA Court," said Managing Director of Telenor Norway, Petter-Børre Furberg.

The EFTA Surveillance Authority (ESA) has investigated different aspects of Telenor's Norwegian mobile business in the period between 2008 to 2012 only.

On the 30th of June, Telenor received a decision which closes ESA's proceedings. This decision relates to Telenor's prices in the segment for mobile broadband to residential customers.

The Investigation
ESA made an unannounced inspection at Telenor's premises in December 2012 in order to examine whether Telenor had acted in breach of EEA competition rules.

The investigation was broad and covered aspects relating to different agreements in the mobile markets. ESA's final decision relates to the margin squeeze issue only, the other aspects of the investigation were closed without any finding of infringement.

Telenor Gets a Fine
The decision concerns the alleged insufficient margins between Telenor's wholesale prices and prices for mobile broadband to residential customers when sold on a stand-alone basis between 2008-2012.

ESA has decided to impose a fine on Telenor amounting to MEUR 111.951 (approximately BNOK 1.2).

"The case concerns a small segment of the mobile market and matters which date way back. We are very surprised by the decision and the size of the fine. We will review the decision thoroughly and are preparing to appeal the decision to the EFTA Court", said Furberg.

The decision concerns so-called margin squeeze practices in relation to retail suppliers offering mobile broadband to residential customers.

Such subscriptions were sold on a stand-alone basis according to Telenor themselves. The subscriptions do not form part of ordinary mobile telephony subscriptions.

There was very limited demand for mobile broadband as a separate product, delivered through a USB-dongle, in 2008- 2012, and the market demand has subsequently shifted to other products.

This development is a direct result of mobile telephony subscriptions including data taking over the market.

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