Allowing what are called regulatory holidays to telecom providers...
Allowing what are called regulatory holidays to telecom providers building next-generation networks violates EU law, the European Court of Justice said Thursday. The European Commission took Germany to court over legislation allowing regulatory relief for “new markets” and benefitting…
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Deutsche Telekom’s fiber network. The high court, following an opinion by its advocate general, agreed with the EC that the provision unduly restricts national regulators from imposing competition conditions on incumbents. The ruling is significant beyond Germany because other incumbents have also sought regulatory breaks, Axel Spies, a Bingham McCutchen lawyer said for the German Competitive Carriers Association VATM. The decision strengthens national authorities by making it clear that they, not lawmakers, are responsible for analyzing markets and setting competition requirements, he said. Clearing away the contentious measure gives German investors greater certainty in planning, and there’s no appeal from the ECJ judgment, he said. The ruling affirms the main principle of EU telecom rules and policy for the past five years, the EC said: Competition -- not a “friendlier attitude to dominant operators” -- is the best way to move ahead.