Hungarian operator Magyar Telekom has received fines of HUF 75 million for competition and contract violations with its Flip broadband offers. The regulator NMHM said the fines include HUF 25 million for infringements on the wholesale broadband market and HUF 50 million for a violation of contractual requirements.
The regulator launched an investigation in late May, shortly after Telekom introduced the Flip low-cost broadband offer. The NMHH found the offer violated the wholesale market regulations, including transparency, non-discrimination and cost orientation obligations for the dominant operator. Magyar Telekom adjusted the offer in response, but the regulator said it was still not satisfactory. Telekom did not offer the same services on a wholesale basis to competitors at least 30 days in advance and get prior approval from the regulator for the new offer.
Telekom may still appeal the fine for wholesale violations in court, while the fine for contract violations can be appealed directly to the regulator. The latter covered problems with the contract terms in the Flip offer, such as availability of customer service, cancellation and call set-up fees, and potential net neutrality violations. Telekom was ordered to submit a plan to the regulator on rectifying the problems and post the terms on its website.
