Industry group Cable Europe has called for the European Commission to block the Dutch regulator's proposed regulation of cable operator VodafoneZiggo. The lobby group said the regulation based on joint market dominance by VodafoneZiggo and KPN sets a "negative precedent" in Europe.
The ACM recently sent the draft proposal to the Commission for comment. The regulation on wholesale broadband access over KPN and VodafoneZiggo networks will become final only if the Commission has no objections.
Matthias Kurth, Executive Chairman of Cable Europe, said the proposal to open up access to VodafoneZiggo's network for the first time "is anachronistic and runs contrary to the consumer interest". He noted that the Dutch market is "highly competitive and is often cited as best in class by international observers", while also scoring highly on the Commission's Digital Economy and Society Index. "The market is extremely dynamic and characterised by innovation, quality of service and affordable prices and there is a commercial wholesale access offer in the market" already, from KPN, he noted.
Kurth warned that regulatory intervention in such a market, based on the concept of joint SMP, would "set a negative precedent in Europe" and comes with risks that are difficult to gauge in advance. "The negative consequences of this proposed regulation will outweigh any marginal improvements the regulator is seeking to achieve," he said. "I hope the Commission will examine this analysis with great care and conclude that the Dutch market and its citizens already benefit from effective competition."
