Poland’s biggest telecoms operator has to pay PLN 75 mln for discriminating competitors on the Internet services market, ruled the President of UOKiK. The practice has been applied for a few years. The decision is to be implemented immediately

The President of the Office of Competition and Consumer Protection initiated the antimonopoly proceedings against Telekomunikacja Polska (TP SA) in December 2004, based on information from other telecommunication operators. The competitors of the biggest telecommunications company in Poland accused it of applying illegal restrictions in the data transmission on the Internet. During the proceedings the employees of UOKiK conducted inspections at the premises of TP SA. The evidence collected during the inspections, together with the results of a specially commissioned expert study, formed the grounds for a decision finding TP SA guilty of using unfair practices. In the opinion of UOKiK, the restrictions in the data transmission resulted from Telekomunikacja Polska programming its appliances in a way that hindered the other operators’ access to the Network.

The Internet is constructed of a number of mutually connected telecommunication networks, with the smallest ones consisting of only two computers and the biggest - of millions of them. The networks may be managed by many Internet operators. In order to connect them with one another special appliances are used. Their task is to orderly transmit the data from the sender to the receiver. These appliances are called routers and their function may be compared to the role of a policeman steering the traffic - they guide the transmission of data on the Network. Routers’ operations are defined in the so-called configuration files, which are special commands installed in them.

TP SA’s market competitors may transmit data using the company’s infrastructure either directly, or indirectly, through cheaper foreign operators. The antimonopoly proceedings conducted by the President of UOKiK revealed that Telekomunikacja Polska had introduced special commands (filters) into its routers, which was meant to restrict the transmission of the data depending on their origin. When TP SA’s competitors chose to use the transmission services of cheaper foreign operators, the company effectively restricted their activity by deteriorating the quality of their services with the filters. As a consequence, the operators were forced to acquire the services directly from Telekomunikacja Polska, a for a price that was even several times higher than that offered by the foreign operators. The result of this practice was a distinct deterioration, or even a complete impediment, of the transmission of data by TP SA’s competitors.

In the opinion of the President of UOKiK the practice of Telekomunikacja Polska is illegal - the company breached competition law. As a result of the violation, the services of TP SA’s competitors became unavailable to a great number of TP SA’s clients. That is why UOKiK ordered the company to change its conduct immediately. In addition, a fine of PLN 75 million was imposed on the operator.

Due to the fact that the proceedings had been conducted both on the basis of national and Community law, the draft decision had been consulted with the European Commission. The decision is not final, the company has the right to appeal to the Court of Competition and Consumer Protection.

More information:
Małgorzata Cieloch, Spokesperson for UOKiK
Pl. Powstańców Warszawy 1, 00-950 Warsaw
Tel. (+48 22) 827 28 92, 55 60 106, 55 60 314
faks (+48 22) 826 11 86
E-mail mcieloch@uokik.gov.pl