Telenor must pay a giant fine of NOK 788 million

The Competition Appeals Board rejects the complaint from Telenor regarding the record fine of NOK 788 million the company was imposed in June 2018.

The fine was imposed on Telenor for abusing its dominant position in the Norwegian mobile market. The Competition Authority issued it to Telenor last year.

Telenor appealed the case to the Competition Appeals Board, which has now rejected the complaint under dissent (2–1). If the company does not accept this decision, the case ends in the judicial system.

The fine of NOK 788 million is the largest imposed by the Authority ever. Telenor has disagreed with the decision from day one. The company has three months to file a case with the Gulating Court of Appeal.

Telenor rejects the accusation

Network Norway built a third mobile network in Norway together with Tele2 from 2007 onwards. Telenor was obliged to give them access to their network through the building period. Telenor, however, changed the terms of the agreement regarding network rental in 2010, in violation of Norwegian law.

“Telenor has not done anything to limit competition in the Norwegian mobile market. The case concerns an agreement between 2010 and 2014 between Telenor – as a network provider – and Network Norway. The agreement had a pricing model that is both common and in demand in the market. A model which we believe is legal,” the CEO of Telenor Norway, Petter-Børre Furberg, claims.

“We will now go through the assessment of the Competition Appeals Committee thoroughly,” he continues.

Violation of the Norwegian Competition Act

The Norwegian Competition Authority is, naturally, satisfied with the decision of the Competition Appeals Board.

“We are very pleased that the Competition Appeals Board shares the Competition Authority’s view that this is a violation of the Competition Act,” Competition Director, Lars Sørgard, comments.