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Colombia: Operators Sue Anti-Trust Regulator Print E-mail
Friday, 28 September 2007
The telephony division of Colombia’s public utility Empresas Publicas de Medellin SA (EPM) is suing the anti-trust regulator for US$ 2.38 billion for failing to stop price collusion between mobile operators between 1998 and 2005.

According to a filing with the securities regulator from EPM, the company, along with other fixed-line operators, is seeking compensation for losses incurred after Colombia’s two largest mobile operators agreed to charge similar fees for calls made from fixed-lines to mobile phones. EPM is seeking compensation for market opportunitites the fixed line companies failed to exploit, as well as damages.

Last month, the anti-trust regulator fined the Colombian units of America Movil and Telefonica after finding that the two operators had agreed to fix prices between 1998 and 2005. The regulator imposed a fine of US$ 862,000 on Comcel, the Colombian unit of America Movil, and a fine of US$ 287,000 on Telefonica.

Comcel and Telefonica had agreed to charge higher fees for calls made from fixed-lines to mobiles than for calls made from mobiles to fixed-lines to boost mobile usage, the regulator said. Despite being illegal, the price agreement lasted seven years between 1998 and 2005, when the telecommunications regulator limited fixed-to-mobile interconnection fees.

The two companies have appealed their fines and deny any wrongdoing, said Hernando Ruiz, who led the investigation on behalf of the anti-trust regulator. EPM also appealed the fines, arguing they are too low, Ruiz said.

Source: Dow Jones - WDR/Intelecon Regulatory News.