Recod fine for Romanian mobile network operators

The Competition Council levied the highest individual fine since its establishment to the mobile network operators, Orange and Vodafone, for abuse of dominant position.

Competition Council President Bogdan Chiriţoiu stated that the individual fines were the highest the council had ever given, amounting to just over 3 percent of both operators’ turnover.

The fines are 34,8 million euros for Orange and 28,3 million euros for Vodafone.

Bogdan Chiriţoiu pointed out that the fines had been levied "because an investigation carried out between 2004 and 2006 showed that the two mobile network operators refused to grant the Netmaster company access to the mobile network for making national and international phone calls".

The Competition Council President explained that ‘the additional incomes that both companies have gained on the market are actually the additional expenses of the operators that made used the Vodafone and Orange networks. In other words, the final consumers paid larger charges.

Orange and Vodafone: The sanction imposed by the Competition Council is unjustified

Orange Romania stated on Tuesday that the decision of the Competition Council to fine Orange and Vodafone 63 million euros for abuse of dominant position was unfounded and unjustified and they would challenge the decision in court.

Orange Romania representatives said that the decision "is based on a misinterpretation of facts’, underlying that the company’s activity on the market had been done ‘according to the law and the competition regulations".

Vodafone Romania representatives also will challenge the Competition Council decision and stated that they "are surprised at and disappointed in" the council’s decision.

Vodafone Romania considers that "no action has been taken to prevent Netmaster Communications" access to the network for making international phone calls, pointing out that they would challenge the decision in court.

Bogdan Chiriţoiu underlined that the investigation regarding Romtelecom, the company that subsequently took over Netmaster, would be finished by the end of the year.

Moreover, according to the Competition Council President, investigations regarding the prepaid SIM cards and the Telecom market are being carried out, but the subject of these investigations has not been made public.

Chiriţoiu also stated that the investigations regarding the retail industry and the fuel market would be finished by the end of the year.

Translated by: Raluca Mizdrea
MA Student, MTTLC, Bucharest University