14 DAY TRIAL // The French department that is in charge with the maintenance of a fare competition on the market has fined three mobile telecom operators for market collusion. The amount that the companies have to pay reaches 534 million euros. The consumer body also expressed its intention to sue them for damages.
On Thursday the Competition Council in France said that the companies that have received the fine are France Telecom unit Orange with 256 million euros (301 million dollars), Bouygues Telecom - with 58 million euros (68 million dollars) and SFR owned by media group Vivendi Universal - 220 million euros (259 million dollars).
The companies claim that the decision is not a fare one and they plan to appeal against it. Apparently, traders think that the fine was less than originally expected, but the three companies might not pay if the appeal comes in their favor. The amount that they are due to pay surpasses a previous penalty for France Telecom - 80 million euros (94 million dollars) and a fine of 174 million euros (205 million dollars) imposed on a group of eight banks in 2000.
As the council made it clear, the arrangement of the companies was "very serious" and the economy was damaged "very significantly".
The association UFC-Que Choisir for consumer rights, which made the complaint from the start, said that now it plans to start a US- style-class-action suit. Alain Bazot, a group's member told Reuters: "Our concern is to get redress for the consumer. We are going to take judicial steps based on the decision by the council to claim damages for the consumer".
The former Industry Minister Patrick Devedjian told Europa 1 radio: "Consumers can now go to the courts to claim damages. In the U.S. that is called a class-action". He continues: "When you see that in France the average monthly bill is 49 euros and it is 31 in Germany, I think the lack of competition is part of the explanation".