France Warned Over Anti-Competitive Nature Of Telecoms Sector

by Ulrika Lomas, for LawAndTax-News.com, Brussels

10 April 2003

The European Commission on Tuesday issued a warning to France over its failure to comply with a December 2001 ruling on its telecoms sector.

The European Court of First Instance ruled in 2001 that the government's preferential treatment of France Telecom was anti-competitive, and ordered the French authorities to amend rules which stifle the company's cable competitors in the telephone and internet markets. So far, however, the terms of the ruling have not been implemented, much to the dismay of the European Commission.

In a briefing issued on Tuesday, the Commission announced that continued failure to comply with the ruling could eventually result in court action being taken against the French government.

According to reports, France Telecom was also ordered on Tuesday to repay the millions of euros which it charged its privately owned rivals for the provision of telephone services to poorer areas of France.

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