In a fast-track assault launched Mon. on Germany’s new ‘regulator...
In a fast-track assault launched Mon. on Germany’s new “regulatory holiday” law, the EC threatened to refer the case to the European Court of Justice “as soon as possible.” Amended rules exempting a new Deutsche Telekom (DT) VDSL broadband…
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network from preemptive competition rules (CD Feb 26 p10), which took effect on the weekend, hurt competition, the EC said. DT controls access to 9.4 million of 12.9 German million lines, the EC said. The law “is bound to lead to numerous legal disputes at EU and national level,” Information Society & Media Comr. Viviane Reding said: “This is the worst possible signal for investment,” depriving DT and competitors of legal certainty. The “infringement” proceeding began with a formal notice, with Germany getting 15 days to respond or face court action. Along with Poland, Germany leads the list of EU countries targeted for infringement proceedings, Reding’s spokesman said. DT competitors hoped the legislature would “give in and prevent a long and tedious court proceeding that may take years,” said attorney Axel Spies on behalf of the German Competitive Carriers Assn. (VATM). Since Germany began eyeing the amendments, the EC has made clear it won’t tolerate special exemptions that provide a safe haven for “national champions,” he said.