Italy

[IT] Italian Competition Authority Closes the Preliminary Inquiry on Telecom

IRIS 2000-3:1/33

Marina Benassi

Attorney at law

On 28 January 2000 the Autorità Garante della Concorrenza e del Mercato (the Italian Competition Authority) deliberated upon the closing of the preliminary inquiry initiated against the former Italian telecom monopolist, Telecom Italia. The inquiry was opened at the instigation of the Italian Association of Internet Providers ("AIIP"). The AIIP originally accused Telecom of having abused its dominant position on the Internetmarket primarily by way of adopting extremely low prices in order to cut off other competitors. Telecom also allegedly distorted competition by adopting discriminatory conditions in the supply of Interbusiness-services to competitors.

The Authority found the conduct of Telecom indeed reprehensible under the rules of Market Competition. Taking into account the offer made by Telecom of providing compensation to Internet Service Providers competing in the market and to immediately cease its infringing behaviour, the Autorità imposed a moderate fine (Lira (ITL) 1.248.000).