Italian operators face antitrust probe over billing practices

News General Italy 16 FEB 2018
Italian operators face antitrust probe over billing practices
Italy's antitrust and competition authority, AGCM, has announced the launch of an investigation into possible collusion by the operators Telecom Italia (TIM), Wind Tre, Vodafone Italia and Fastweb over their controversial 28-day billing practices. The probe also includes industry group Assotelecomunicazioni (Asstel), with the antitrust watchdog already having carried out inspections in that regard at Asstel’s Rome office. In a statement, AGCM said it’s looking into whether the operators “coordinated their commercial strategy in relation to the frequency of renewals and billing of offers in the market of fixed and mobile telecommunications retail services following the introduction of new regulatory obligations.”

The probe comes after the ruling Democratic Party (PD) last year moved to ban 28-day bills, which effectively resulted in a 13th monthly bill every year, giving the operators 120 days to adapt to the new rules and return to issuing monthly bills. The operators proceeded to inform customers that billing would again be calculated on a monthly basis starting in March and April, although consumer associations subsequently accused them of applying unjustified increases to mobile and fixed-line subscription fees to compensate for the requirement to drop the practice.

Italian consumer association UNC wrote to AGCM and communications regulator AGCOM to complain about misleading information and unfair trade practices, saying operators have effectively increased rates by 8.6 percent on a monthly basis to compensate for the requirement to drop 28-day billing and reintroduce 12-month rather than 13-month bills.

In response to the probe, TIM issued a statement stressing that it had always complied with existing regulation and that it categorically ruled out any coordination of its commercial strategy with other operators over billing rules. Asstel also confirmed that it had cooperated in full with the AGCM’s inspections at its office and was unaware of any anti-competitive practices. The probe is due to be completed by completed by 31 March 2019.


 

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