Overcharging for international telephone calls

In August 1998 the European Commissioner in charge of competition, Mr Karel Van Miert, decided to press ahead with an investigation into prices for international phone calls paid to seven dominant telephone operators. His decision was based on data suggesting that the international accounting rates (i.e. the charge agreed between two telecommunications operators for carrying an international call from its origin to its destination) applied within the European Union by the seven operators could result in excessive margins. The Commission's Directorate-General for Competition (DGIV) undertook the investigation in cooperation with the national telecommunications regulatory authorities. The procedures carried out by the latter in Finland, Austria and Portugal led to the result that accounting rates applied by three of the operators concerned had decreased considerably (on average by 26 to 28% respectively). Following the swift action by the national regulators the Commission has now decided that it can close its investigation in respect of these operators.