NMa: UPC and Casema Have Not Abused Their Dominant Position

The tariffs for analogue standard packages (radio and television via the cable) which UPC and Casema have charged in recent years are not excessive in terms of the Competition Act. There is also no question of the abuse of a dominant position. The Netherlands Competition Authority (NMa) reached this conclusion after an in-depth investigation into the returns which both cable companies have realised on their analogue standard packages.

NMa assesses whether parties with a dominant position have infringed the Competition Act. In its investigations, NMa investigated the total costs and revenues of the analogue standard packages offered by UPC and Casema in the Netherlands. It emerged, however, from the investigations that the tariffs charged by UPC and Casema in the years 2003 up to and including 2005 have increased, but it did not appear that the costs and revenues of UPC and Casema were not in reasonable proportion to each other for a lengthy period.

In its assessment, NMa took into account the fact that the returns of UPC and Casema stimulate other undertakings to innovate and make investments, such as investments in alternative technologies and new products and services. These developments in the sector may benefit consumers in the long term, for instance in the form of greater freedom of choice. In its decisions NMa indicates that there has been increasing uncertainty as to whether UPC and Casema will also be able to continue realising the present level of return in the future. However, depending on developments in the market without regulation the risk remains that the tariffs of UPC and Casema will nevertheless become excessive. Within the framework of its analysis of the broadcasting market, in its draft decisions OPTA has indicated that it wishes to impose compulsory tariffs for standard packages on a number of cable companies, including UPC and Casema, in accordance with the standards set out in the Telecommunications Act.