WRITTEN QUESTION No. 47/99 by Ernesto CACCAVALE to the Commission. Unlawful rise in the cost of calls between fixed and mobile telephones in Italy
Date: 1999-01-15
Institutions: CACCAVALE, European Parliament
Subjects: Italy, advertising malpractice, consumer protection, economic survey, infringement of EU law, liberalisation of the market, radio telecommunications, restriction on competition, telephone charges

21.7.1999

EN

Official Journal of the European Communities

C 207/169

(cid:1) whether it does not consider, in the light of this latest event, that the Italian economy is still dominated by

monopolies or, at best, duopolies, which end up acting much like rigid monopolies;

(cid:1) what steps it intends to take to safeguard free competition on the market and, above all, the interests of

users?

(1999/C 207/235)

WRITTEN QUESTION E-0036/99

by Gianfranco Dell’Alba (ARE) to the Commission

(20 January 1999)

Subject: Agreement between TIM and Omnitel on telephone charges

The Italian mobile telephone companies TIM and Omnitel have apparently come to an arrangement on
charges, which for certain categories of telephone call or subscription rates entails an increase of up to 150 %.
The increases concern in particular ‘family’ subscriptions, which were widely promoted in the run-up to
Christmas, and adversely affect the promised incentives. The increases, which affect calls from fixed to mobile
phones in particular, are blamed on decisions taken by the mobile telephony authorities.

Does the Commission not consider that the de facto agreement between TIM and Omnitel clearly infringes the
rules on competition laid down in the EEC Treaty, in particular Article 85 thereof, according to which ‘the
following shall be prohibited as incompatible with the common market: all agreements between
undertakings ... and concerted practices which ... have as their object or effect the prevention, restriction or
distortion of competition within the common market, and in particular those which: (a) directly or indirectly
fix purchase or selling prices and any other trading conditions’?

Does it not consider that it should order the immediate suspension of the new arrangements and initiate
proceedings for infringement of Article 85 of the Treaty of Rome?

(1999/C 207/236)

WRITTEN QUESTION P-0047/99

by Ernesto Caccavale (UPE) to the Commission

(15 January 1999)

Subject: Unlawful rise in the cost of calls between fixed and mobile telephones in Italy

In a move called ‘simplification of charges’ the two mobile telephone companies in Italy, Tim-Telecom and
Omnitel, have jointly decided to raise substantially the cost of calls made from ordinary to mobile telephones.
In some cases this rise can be as much as nearly 200 % and mainly affects calls made during the hours when
calls used to be cheapest, i.e. at night, and on Saturdays, Sundays and public holidays. They have established a
single rate valid every day and at all times of day, with VAT charged at 20 %, and two call units charged as soon
as the person called answers the phone.

Can the Commission therefore:

1.

2.

3.

ascertain whether the rise in question is a blatant infringement of European competition law, in particular
Article 85 of the Treaty of Rome;

ascertain whether this across-the-board increase in the cost of calls made from fixed to mobile telephones,
in a context of the liberalisation of telecommunication services, may be the result of a classic cartel
between the two leading firms in the sector, disregarding the most elementary principles of free
competition;

say what steps it intends to take to safeguard the free market and users in particular, whose right to choose
between different rates is thus jeopardized and whether it does not consider, in particular, that there are
therefore valid grounds for bringing infringement proceedings?