Dutch telecom company KPN fined for putting competitors at a disadvantage

The Netherlands Authority for Consumers and Markets (ACM) has imposed two fines on Dutch telecom company KPN totaling EUR 8 million for putting its competitors at a disadvantage. These fines concern violations committed with regard to the business service ‘ISDN line security’ (EUR 6 million) and the fiber technology ‘SDF backhaul’ (EUR 2 million).

KPN is required to inform in advance its competitors that use its network about what services KPN will offer its own customers. In addition, KPN must offer in a timely manner to competitors the opportunity to make a similar offer to their customers. This prevents unfair competition. For both of these services, KPN failed to inform its competitors.

Competitors were unaware of the ‘ISDN line security’ service’s existence, whereas KPN did offer this service through its own subsidiaries. It concerned a monitoring service, guaranteeing that service disruptions would be resolved within four hours. This service came with business contracts, and, with it, KPN was able to hold on to its business customers. Competitors were not able to make a similar offer to their customers.

The same goes for the service ‘SDF backhaul’, which makes fast internet and television services possible. KPN did not offer this fiber technology properly to its competitors. In addition, KPN charged its own subsidiaries a lower tariff than allowed under the obligations imposed by ACM. Both of these reasons made it impossible for KPN’s competitors to offer their customers a similar offer, and KPN thus gained an unfair advantage.

“This is not the first time that KPN is fined for this kind of conduct,” says Anita Vegter, Member of the Board of ACM. She continues: “It is crucial that, with its strong market position, KPN complies with the requirements that we impose. These requirements ensure that competitors are able to gain a position on the market, thereby keeping KPN sharp.”

Next to the two fines, ACM also laid down a ruling on objection, lowering the fine regarding business call-forwarding service *21 online from EUR 2.7 million to EUR 600,000. Following the objections raised by KPN, ACM has adjusted the fine in connection with proportionality, and with the duration of the violation.