Proceeding No. PRC/2003/05 was opened by the Competition Authority Board on 15-10-2003, for alleged violation of Article 6 of Law 18/2003 of 11 June and Article 82 of the Treaty establishing the European Community.
The investigation analysed the behaviour adopted by the companies Portugal Telecom S.G.P.S., S.A. (Portugal Telecom), PT Comunicações, S.A. (PTC), ZON - Multimédia, Serviços de Telecomunicações e Multimédia S.G.P.S., S.A. (ZON Multimédia), and ZON - TV CABO Portugal, S.A. (ZON TV Cabo), materialised in the definition and application, in the period between 22 May 2002 and 30 June 2003, of wholesale tariffs "Rede ADSL PT" (versions 11 to 15.9), and retail tariffs "SAPO ADSL.PT - Standard", "Netcabo Speed On 640", "Netcabo Speed Use RC" and "Netcabo Speed On 128".
Through these tariffs, the defendants artificially and unfairly set prices for wholesale and retail broadband access services, artificially inducing an increase in the wholesale price (compared to the retail price) and a decrease in the retail price (compared to the wholesale price), thus preventing an alternative operator, although equally efficient to the retail company of the PT Group, from making a profit (a practice commonly known as "margin squeeze").
Likewise, through the discount system contained in the wholesale tariff "Rede ADSL PT" (versions 11 to 15.9), the defendant PTC systematically applied unequal conditions in relation to equivalent services, positively discriminating against another PT Group company, TELEPAC II, to the detriment of competitors.
The Defendants' conduct ultimately resulted in limitations of production, distribution, technical development and investment with respect to the services concerned, to the prejudice of competition and consumers.
The Investigated Practices resulted in abusive behaviour through artificial price fixing; discrimination; limitation of production, distribution, technical development and investment. On 28.08.2009, the AdC issued a condemnatory decision imposing the following fines: PT SGPS € 386,571, PTC € 44,629,053, TELEPACII and € 1,983,168, ZON € 0, TV CABO € 8,046,243.