EU to take legal action against Germany for favouring Deutsche Telekom

27/06/2007 12:00 - 1040 Views

On June 26th, The European Commission initiate a lawsuit against Germany to the Supreme court since this country recently applied new regulations that favored Deutsche Telekom, German leading telecommunications company, in the telecom sector.

Explaining for this decision, EC representative stressed that German government had many times ignored EC’s warnings about this new regulations, which created unfair competition in the EU telecom sector.

"The Commission has repeatedly warned Germany that its new telecom law violates European Union competition rules, but without success," said E.U. Telecom Commissioner Viviane Reding.

The law,which was applied from Feb 2007, has created many barriers to prevent Deutsche Telekom's challengers from entering  the market.

From Berlin, Economics Ministry spokeswoman told reporters that they considered the allegations as being unjustified and has no legal basis.

32% of Deutsche Telekom is owned by the German Government. This company is dominating the domestic telecom market and also the leading firm in EU telecom sector.

Nh?t Vy (Theo AFP, CNNMoney)

28/06/2007

Source: vietnamnet
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