The Norwegian Competition Authority (Konkurransetilsynet) said it has issued a statement of objections to Telenor Norway for abuse of a dominant position, and has warned the operator that it is considering imposing a fine of NOK 906 million (EUR 100 million) for the infringement. Its view is that Telenor behaved in a way that impeded the entry of a third, competing mobile network. The operator has until 01 March 2017 to respond.
This case affects all users of mobile phones in Norway, said director general Lars Sorgard. Norway is one of the few countries in Europe with only two mobile network providers with nationwide coverage, namely Telenor and Telia. The entry of a third was crucial to increasing competition.
The authority's preliminary conclusion is that Telenor abused its dominant position between 2010 and 2014, with two separate abuses that put the deployment of a third mobile network at risk.
From 2007 onwards, Network Norway and Tele2 established a third mobile network in Norway. During the network roll-out phase, Telenor was required to provide them with access to its network in areas where the third network was not yet present.
The first abuse regards Telenor's conditions for giving Network Norway access to its network when the third network was under construction. These conditions reduced the profitability of building the third network, said Sorgard.
The second abuse regards the fact that Telenor entered exclusive supply agreements with four mobile operators, reducing the ability of the third network to get customers.
The authority stressed that the findings in the statement of objections are preliminary, and that a final decision in the case has not yet been made.
Telenor responded by saying the notice from the authority comes as a surprise to it. It said the authority claims that Telenor restricted competition through price terms and a double roaming prohibition in wholesale agreements from 2010-2014. CTO Berit Svendsen pointed out that Asker and Baerum District Court reviewed this type of agreement in 2012 and found it in line with the competition rules.
The company said the investigation concerns past circumstances and it does not expect that the notification will have any negative impact on its business in Norway. The company will closely review the notice and provide feedback to the authority in accordance with the standard process.
