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LONDON (Alliance News) - Vodafone Group PLC said Thursday that its Vodafone Netherlands operation has begun legal action against incumbent telecoms operator Koninklijke KPN NV, alleging anti-competitive behaviour in the Dutch communications market.
Vodafone Netherlands is claiming that KPN delayed the introduction of Vodafone's competing television, fixed-line broadband and telephone proposition by three years by "failing repeatedly to meet its commitments to deliver the technology needed."
KPN operates the Netherlands' only nationwide telephone network alongside its largest fibre-optic network.
Whilst KPN failed to deliver services it had agreed to Vodafone Netherlands it launched a comparable package under its own brand and that of its subsidiary, preventing Vodafone Netherlands from gaining a significant market share, the company said.
"KPN's refusal to supply Vodafone Netherlands qualifies as abuse of a dominant market position and resulted in an estimated EUR115 million in damages for Vodafone Netherlands," the company said.
"Markets cannot function without effective competition. Our challenge is that Vodafone relies on its biggest competitor ? the incumbent operator ? as a supplier in order to provide Dutch consumers with a competitive choice," said Vodafone Netherlands Chief Executive Rob Shuter.
"KPN has repeatedly failed to deliver on its commitments and has instead seriously abused its dominant position. This is bad for consumers, bad for the development of the Dutch telecoms markets and bad for competition. We hope that taking this legal action will help to rectify the harm caused by KPN's actions and alter its future behaviour," he added.
Shares in Vodafone were down 0.8% at 214.18 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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