18. december 2013
On 18 December 2013 the Danish Competition Council accepted commitments from the Danish telecom-incumbent TDC A/S on the basis of concerns that TDC A/S had potentially abused its dominant position on the telecom-copper infrastructure by performing a margin squeeze on broadband products sold to private consumers. The commitments accommodate the Danish Competition Councils concerns. Accordingly, the Danish Competition Council has not assessed whether or not TDC A/S has abused its dominant position in the relevant market.
TDC commits not to perform an illegal margin squeeze in violation of section 11 of the Danish Competition Act and article 102 of the EC Treaty. This involves that TDC meets a number of specific conditions and demonstrate to the Danish Competition Authority that these conditions are met.
The commitments will lead to more transparency and will provide a more accurate basis for the assessment of the company's compliance with section 11 of the Danish Competition Act and article 102 of the EC Treaty.
The case concerns TDC, the Danish incumbent broadband provider. TDC has a monopoly on the Danish copper infrastructure (the upstream market) and is also present on the downstream retail broadband market.
TDC’s monopoly in the upstream market is regulated and TDC is obliged to grant third party access.
A complaint was filed with the Danish Competition Authority claiming that TDC has abused its dominant position by charging too low prices in the retail market compared to its wholesale prices. The complaint states that competitors are not able to make a positive return on selling broadband to private end consumers.
The Danish Competition Authority had concerns that the behavior of TDC could significantly restrict competition in the retail broadband market and therefore began a thorough investigation of TDC’s price and cost structure. In the beginning of this process TDC offered to meet the aforementioned concerns by committing to a number of conditions to accommodate the Danish Competition Authority’s concerns.
It is the Danish Competition Authority’s assessment that the commitments promote transparency and improve the Danish Competition Authority’s ability to examine TDC’s behavior in future cases.
Thus, the commitments accommodate the Danish Competition Authority’s concerns regarding TDC’s behavior in the market and the Danish Competition Authority has therefore not specifically assessed whether or not TDC has abused its dominant position in the market.
For more information please contact Head of Division, Jacob Schaumburg-Müller, phone +45 41 71 51 18, e-mail email@example.com.