The European Commission said it has fined Spanish telecoms operator Telefonica SA 151.9 million for over five years of imposing 'unfair prices' on the Spanish broadband market.
The commission said Telefonica imposed unfair prices in the form of a margin squeeze between the wholesale prices it charged to competitors and the retail prices it charged to its own customers.
By doing this, Telefonica weakened its competitors, making their growth difficult and thereby forcing them to make losses if they wanted to match Telefonica's retail prices.
"Spanish consumers are paying far more than the average for high-speed internet access and many have chosen not to pay that price. The margin squeeze that Telefonica imposed on its competitors not only raised their costs, but also harmed customers significantly."
"When consumers and businesses are harmed in such a major market, the entire economy suffers. I will not allow dominant companies to set prices that undermine telecoms liberalisation," competition commissioner Neelie Kroes said in a statement.