4 September 04: Ofcom issues statement of objections to BT over residential broadband pricing
Ofcom proposes to find that BT Group has infringed Section 18 of the Competition Act 1998 and Article 82 of the EC Treaty in relation to the company's residential broadband pricing. The statement follows an appeal by Wanadoo UK (formerly Freeserve) of Ofcom's 20 November 03 decision, which cleared BT of abusive pricing, to the Competition Appeals Tribunal. Ofcom was originally ordered by the Tribunal to reconsider Wanadoo UK's predatory pricing complaint against BT on 16 April 03. Wanadoo UK's original complaint alleged that BT was conducting 'an orchestrated campaign of anticompetitive behaviour, aimed at achieving dominance in the market for retail broadband (ADSL) services,' in breach of the Competition Act.
UK believes that Ofcom's approach in its first two decisions was "fundamentally flawed on factual, legal and methodological bases," and inconsistent with the European Commission's approach to assessing anticompetitive pricing in the Deutsche Telekom and Wanadoo cases. Ofcom has now issued a Statement of Objections allowing BT the opportunity to make representations in response to Ofcom's proposed decision.
Market Analysis was retained by Freeserve in April 03 to provide expert economic evidence in the case and will continue to assist throughout the appeal and ongoing Ofcom investigation.
For more information see: www.ofcom.org.uk