Latest News

May 2, 2013

Ofcom to probe BT over pricing after repeated complaints from TalkTalk

OFT-approved-code-logo

It seems that constant complaining works even for the big companies. TalkTalk boss Dido Harding has done just that in convincing Ofcom to investigate BT over price’s as it has a monopoly over the fibre broadband.

Yesterday (Wednesday) the regulator opened a new file to look at (“alleged” margin squeeze in superfast broadband pricing).
Under the UK’s 1998 Competition Act and Article 102 of the Treaty on the Functioning of the European Union, which all the watchdogs use to consider if abuse of a dominant is occurring or, has occurred.
Ms Dido Harding said:

She wasn’t attacking “the regime” as it currently stands, but warned that – a few years from now – “a large proportion of the country will take their phone broadband as a superfast product, and I don’t think that we should live in a world where that is an unregulated product provided by the admittedly very talented and lovely monopolist [BT’s Openreach boss Liv Garfield].”

Ofcom said in a competition bulletin on its website that TalkTalk had alleged that BT had…

failed to maintain a sufficient margin between its upstream costs and downstream prices, thereby operating an abusive margin squeeze.

The regulator added that it was able to proceed with a probe of BT’s business practice on the basis that there were “reasonable grounds for suspecting that the Chapter II prohibition and/or the prohibition in Article 102 TFEU has been infringed.” It continued: “In addition to the Chapter II prohibition in the Act, Ofcom has the power to apply Article 102 TFEU in full.”
Ofcom will now consider whether BT has abused a dominant position under UK and/or EU law.

To get all the latest phone reviews, news and features beamed straight to your Android device of choice, head to the Google Play store and download the free BeginnerTech Android app today, by click our icon below. To use the QR code you will need a Barcode scanner, app from the play store, then click the QR code.
BT_BODY_100x100 BT_QRcode_100x100

Be Sociable, Share!

The following two tabs change content below.

avatar

Dave Thornton

Senior Editor

Senior Editor
Been involved in technology for many years, more than I care to remember. Live in Dundee, Scotland. I like Android, Windows Phone OS, BlackBerry OS and iOS, and love writing about all things techie. Currently have a Honor 6+, Elephone P6000, Nexus 5, Chrombook C720, HTC One M7, Nokia Lumina 625, Microsoft Lumia 435, Blackberry Q10, HTC Hero and iPad mini