AdC hands Zon and PT record fines

2 Sep 2009

Portugal’s antitrust authority, the Autoridade da Concorrencia (AdC), has fined incumbent operator Portugal Telecom (PT) and Zon Multimedia, previously a PT subsidiary, a total of EUR53 million (USD75.8 million) for abusing their dominant position. The AdC said that the fines pertain to complaints made during 2003 and 2004, when PT and Zon were still a single company and the country’s sole wholesale operator. The AdC said: ‘An investigation proved the abuse of the dominant position by the accused, demonstrating the existence of competition restricting practices such as artificial price-fixing, discrimination and limits on production, distribution, technical development and investment.’ PT was fined EUR45 million whilst Zon has been charged with the remaining EUR8 million. The telcos described the ruling as ‘unfair’ and said they would appeal before the Commercial Court of Lisbon.



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