The Spanish regulator CNMC has fined Telefónica €8.5 million for breaching its obligations as a wholesaler of broadband and terminal leased lines.
In a statement, CNMC says that the Basque government awarded Telefónica part of a contract, a bid for which could not have been matched by the cable operator Euskaltel.
Had Euskaltel offered the same amount, it would have made a negative return.
Telefónica can appeal the fine within two months of its notification.