TeliaSonera rejects Swedish Competition Authority’s accusation of price squeezing

The Swedish Competition Authority (Konkurrensverket, KKV) announced today that it is taking legal action against TeliaSonera Sweden for acting in violation of the competition rules for the broadband market. TeliaSonera Sweden rejects the KKV’s assertion that TeliaSonera Sweden has been practicing price squeezing and that TeliaSonera Sweden has acted in violation of the competition rules for the broadband market in Sweden. In the opinion of TeliaSonera Sweden, the pricing used in both the retail and wholesale market, which KKV’s accusation pertains to, was commercially motivated and in line with current competition rules. According to KKV, the alleged violation took place in January 2003.

Price squeezing is a complex issue in terms of fair trade legislation, which is shown by KKV’s action. The authority has previously expressed different opinions on this matter since it started to take up the issue three years ago.

In Sweden, there has been stiff competition in the broadband market, with many providers and strong market development, ever since 2000. KKV’s accusation concerns a period when ADSL, as a technology for fast Internet connections, was launched by TeliaSonera Sweden, and when TeliaSonera Sweden, on its own initiative, offered other providers wholesale services for participating in the broadband market and its development.

TeliaSonera Sweden will refute KKV’s lawsuit in court and further elaborate the company’s opinion that its actions have not been in violation of competition regulations.