Telenor receives an estimated fine of 906 million

TelenorTelenor headquarters.Photo: Norway Today media

The Competition Authority has given notice that they will impose a fee on Telenor of NOK 906 million for the company’s abuse of its dominant position.

‘This case is important for everybody who uses a mobile phone in Norway. Our preliminary assessment is that Telenor has abused its dominant position by creating obstacles to the establishment of a third mobile network that might provide competition’, said the Competition Director, Lars Sørgård.

Following the Competition Authority’s preliminary assessment, it was agreed that Telenor had abused its dominant position in the period from 2010 to 2014 through two types of action. These put the development of the third mobile network in jeopardy.

Telenor’s terms of contract with Network Norway, which built a third mobile network, reduced the profitability of the development, according to Sørgård.

In addition, Telenor entered into exclusive agreements with four mobile operators, thus limiting the third cellular company’s opportunities to acquire customers.

Norway is one of very few countries in Europe with only two nationwide mobile networks (which are owned by Telenor and Telia).

The initial decision of the Competition Authority is not final.

‘The forecast reflects the preliminary assessment made by the Competition Authority, and we will now carry out a thorough review’, said Berit Svendsen, the CEO of Telenor Norway.

 

Source: NTB scanpix / Norway Today

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