NMa Draws up a Report on Mobile Telephone Operators

Following an investigation, the Netherlands Competition Authority (NMa) has drawn up a report on the five mobile telephone operators due to an agreement entered into by Vodafone N.V., KPN Mobile N.V., Dutchtone N.V., Ben Nederland B.V. and O2 (Netherlands) B.V. which restrains competition. This relates to an agreement to reduce jointly and almost simultaneously the fee paid to dealers for selling telephone subscriptions. As a result, consumers pay more for the purchase of a mobile telephone in combination with a subscription.

Agreements between undertakings that restrain competition are prohibited under the Competition Act. One of the factors of competition between mobile telephone operators is the fee operators pay to dealers. As a result of the agreement entered into jointly by the operators, price competition has decreased since August/September 2001.

Dealers receive a so-called subscription fee from the operators when a consumer takes out a mobile telephone subscription. The dealer uses this fee to offer the consumer a mobile telephone, which is sold in combination with the subscription, at a lower price.

The report contains a reasonable suspicion that an infringement has been committed. The parties involved have now been given the opportunity to respond to the report. After this, NMa will take a final decision on whether an infringement has been committed and, if so, whether to impose a fine or some other sanction.