Vodafone Netherlands is accusing KPN of abuse of a dominant market position and is suing the company for €115 million in damages.
According to Vodafone, the operator lost millions of Euros between 2011 and 2014 because KPN “routinely” thwarted them in their wish to launch a triple play (Vodafone Thuis) service including an IPTV service.
“KPN delayed by three years the nationwide introduction of Vodafone’s competing TV, fixed-line broadband and fixed-line telephone proposition, by failing repeatedly to meet its commitments to deliver the technology needed,” Vodafone said in a statement.
“Such practises amounted to “anti-competitive behaviour in the Dutch convergent communications market to the detriment of competition and consumer choice.”
Although KPN did not deliver the services agreed to Vodafone Netherlands, KPN was able to launch a comparable ‘all-in-one’ package under its own brand and that of its subsidiary, Telfort, thereby preventing Vodafone Netherlands from gaining a significant market share in a crucial period when more than 100,000 households per quarter chose to move to ‘all-in-one’ propositions.
KPN repeatedly came up with excuses for delays. Vodafone customers also had to call a KPN call centre with questions and complaints and were told multiple times that the television platform was postponed. And KPN continually put new managers on the project.
The Chief Executive of Vodafone Netherlands Rob Shuter (pictured) 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. 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.”
Vodafone said it’s asking the Dutch court for an initial ruling confirming KPN’s “unlawful behaviour”. Vodafone Netherlands has lodged its claim with the court of justice in The Hague and asks initially for the court to confirm the unlawful behaviour of KPN.
Vodafone Netherlands’ legal action against KPN is in line with similar legal actions by Vodafone and regulatory authorities in other European markets where incumbent operators have abused or are suspected of abusing their dominant positions.
KPN declined to comment, but a spokesperson told the AFP agency that “KPN does not recognise the situation described by Vodafone.”
