BT To Be Fined? - Wanadoo Complaint
Posted: 03rd Sep, 2004 By: MarkJ
Some reports have suggested that BT could be fined if the outcome of a Wanadoo complaint (anti-competitive) through Ofcom regarding its residential broadband pricing holds true. However, that now seems unlikely:
Ofcom announced on Wednesday that it believes BT has infringed competition law in its pricing of broadband services. This led to speculation that BT could be fined hundreds of millions of pounds, because a company that breaks competition law can lose up to 10 percent of their turnover.
ZDNet UK understands that that the Statement of Objections sent to BT by Ofcom -- a confidential document that lays out the charges against BT and the proposed remedies -- doesn't contain any mention of financial penalties.
Both BT and Ofcom are restricted from disclosing much information because the case is still a 'live' legal issue. But sources within both organisations are playing down the probable impact of the investigation, which is likely to run into 2005.
Presently both BT and Wanadoo seem equally confident of their positions, although the exact outcome of the case remains to be seen. More @ ZDNet.
Ofcom announced on Wednesday that it believes BT has infringed competition law in its pricing of broadband services. This led to speculation that BT could be fined hundreds of millions of pounds, because a company that breaks competition law can lose up to 10 percent of their turnover.
ZDNet UK understands that that the Statement of Objections sent to BT by Ofcom -- a confidential document that lays out the charges against BT and the proposed remedies -- doesn't contain any mention of financial penalties.
Both BT and Ofcom are restricted from disclosing much information because the case is still a 'live' legal issue. But sources within both organisations are playing down the probable impact of the investigation, which is likely to run into 2005.
Presently both BT and Wanadoo seem equally confident of their positions, although the exact outcome of the case remains to be seen. More @ ZDNet.
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