The Spanish regulator CNMC has initiated disciplinary proceedings against Telefónica for allegedly breaching its regulatory obligations in the broadband and line rental markets.
In a statement, the CNMC says that in January 2016 the Basque government awarded Telefónica part of a contract for the provision of telco services for the autonomous administration.
However, before the award the cable operator Euskaltel accused Telefónica of submitting a bid that could not matched by any operator specialised in the business sector.
The CNMC agreed with Euskaltel, concluding that Telefónica’s offer would be loss making.
The CNMC says that while it has investigated two similar cases involving Telefónica, it each instance it found the telco not guilty of breaching its regulatory obligations.
On this occasion, it will have a year to make a decision on Telefónica’s actions.