Gulating Court of Appeal agrees with the Norwegian Competition Authority that Telenor has abused its dominant position in the Norwegian mobile market and upholds fine of 788 million NOK.
The Court Appeal concludes in its judgment that Telenor created barriers for the development of a third mobile network in Norway, and thereby limited the possibilities for a competitor to enter the market. This is a serious violation of the Norwegian Competition Act. Telenor as a dominant company has a special responsibility not to allow its conduct to impair genuine undistorted competition on the market.
Norway has been one of very few countries in Europe with only two mobile operators with their own nationwide mobile network, with Telenor as the dominant player. Mobile operators without their own network have to rent access to either Telenor’s or Telia’s network. Due to the lack of effective competition, the Norwegian mobile market is still regulated.
Therefore, the development of a third mobile network in Norway was key to achieving increased competition in this market.
In 2007, Network Norway started the construction of a third mobile network together with Tele2. During the rollout of the network, Network Norway bought access to Telenors’ network in the areas where the third mobile network did not yet have coverage.
In 2010, Telenor changed the conditions in its network access agreement with Network Norway. It is in this regard that Telenor abused its dominant position.
Through the new agreement, Telenor reduced the cost for the actual use of Telenor’s network, but at the same time introduced a fee that increased with the number of Network Norway’s end users. Network Norway had to continue to pay this fee even though it increased the use of its own network.
The Court of Appeal also confirms that Telenor had a dominant position in the period from 2010 to 2014, when the abuse took place. A fine of 788 million NOK is imposed on Telenor. This is the highest fine imposed on a company in Norway for abuse of a dominant position. ■
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