(Fornebu 30 June 2020) The EFTA Surveillance Authority (ESA) has investigated different aspects of Telenor's Norwegian mobile business in the period between 2008 to 2012 only. Today, Telenor received a decision which closes ESA's proceedings. This decision relates to Telenor's prices in the segment for mobile broadband to residential customers.
ESA made an unanounced inspection at Telenor's premises in December 2012 in order to examine whether Telenor had acted in breach of EEA competition rules. The investigation was broad and covered aspects relating to different agreements in the mobile markets. ESA's final decision relates to the margin squeeze issue only, the other aspects of the investigation were closed without any finding of infringement.
The decision concerns the alleged insufficient margins between Telenor's wholesale prices and prices for mobile broadband to residential customers when sold on a stand alone basis between 2008-2012. ESA has decided to impose a fine on Telenor amounting to MEUR 111.951 (approximately BNOK 1.2)..
"The case concerns a small segment of the mobile market and matters which date way back. We are very surprised by the decision and the size of the fine. We will review the decision thoroughly and are preparing to appeal the decision to the EFTA Court", says managing director of Telenor Norway, Petter-Børre Furberg,
The decision concerns so-called margin squeeze practices in relation to retail suppliers offering mobile broadband to residential customers. Such subscriptions were sold on a stand alone basis – they do not form part of ordinary mobile telephony subscriptions. There was very limited demand for mobile broadband as a separate product (delivered through a USB-dongle) in 2008- 2012, and the market demand has subsequently shifted to other products. This development is in particular result of mobile telephony subscriptions including data taking over the market
Telenor Norge AS is Norway's largest provider of telecommunications and digital services. Our infrastructure is the foundation for digitising Norway, with its world-class coverage and high speeds. Our services and products contribute to increased productivity and provide access to everything that the digital world has to offer. Our services and products help to improve productivity and provide access to all digital content. Our security and preparedness organisation works around the clock to keep our customers safe, and we are particularly aware of our social responsibility to provide security and safety for children and young people online.
We employ 3400 people in 23 offices across Norway and we are a part of the Telenor Group, which has operations in 12 countries. Our main office is located on Fornebu in Baerum.