EU Says Czech Mobile Network-Sharing Agreement May Harm Competition
07 Agosto 2019 - 01:26PM
Dow Jones News
By Patrick Costello
The European Union said Wednesday that a network-sharing
agreement between mobile operators O2 Czech Republic AS (TELEC.PR)
and Deutsche Telekom's (DTE.XE) T-Mobile Czech Republic AS
subsidiary may restrict competition in breach of the bloc's
antitrust rules.
The operators' agreement--which facilitates the rollout of
communications networks by reducing costs--has gradually expanded
since its launch in 2011, the EU said.
It currently covers all mobile technologies and roughly 85% of
the country's population, the EU said.
"In the present case, we have concerns that the network sharing
agreement between the two major operators in Czechia reduces
competition in the more densely populated areas of the country," EU
Commissioner Margrethe Vestager said.
The EU said the agreement--under investigation since 2016--is
likely to remove incentives for the two mobile operators to improve
their networks and services rather than lead to greater
efficiencies and higher service quality.
As a result, the EU said its preliminary conclusion is that the
agreement restricts competition and harms innovation. The companies
now have time to respond to the EU's concerns or risk facing a fine
for anti-competitive behavior. The EU said there is no deadline for
ending its investigation.
Write to Patrick Costello at patrick.costello@dowjones.com.
(END) Dow Jones Newswires
August 07, 2019 07:11 ET (11:11 GMT)
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