Spanish consumers' association alerts industry watchdog about possible cartel practices
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Juan Fernandez Gonzalez
| 19 February 2018

FACUA-Consumidores en Acción has filed a report to Spain's Comisión Nacional de los Mercados y la Competencia (CNMC) alleging a potential anti-competitive deal between Telefónica, Vodafone and Orange.

According to FACUA, the three major telcos have tried to agree similar prices increases across each of their respective pay-TV, Internet and phone packages, thus breaking competition regulations in the country.

"Users suffer the consequences of a market controlled by an oligopoly which is not actually competing and continuously increases rates, taking advantage of a lack of regulatory limits," the consumers' platform pointed out. FACUA alseo claimed that competitive conditions have worsened since the larger telcos bought out the smaller players and the market consolidated.
Research tends to support FACUA's arguments, showing that prices of pay-TV and convergent packages have increased by 15% over the last year . In addition, at the beginning of 2018, Telefónica, and Orange carried a new rates increase , while Vodafone has announced a raise in prices for April.

"We doubt...actual competition among the three players," said FACUA in the report. "If most of the market is controlled by them, and the three companies increase prices at the same time, users will be forced to accept the new conditions as there is no real alternative in the market."

Even though the telcos have undoubtedly improved their services with more pay-TV channels and higher broadband network quality and speed, prices have steadily increased over the last three years, both for premium and basic offerings.

FACUA considers a violation of Spain's competitivity rules has taken place and has asked the CNMC to fine the telcos with a penalty of up to 10% of their annual revenue.