Tele2 right intervene SCA action TeliaSonera


In December 2004 the Swedish Competition Authority brought an action in the Stockholm City Court against TeliaSonera AB for alleged abuse of dominant position in the Swedish broadband ADSL market. The SCA requested that the court impose an administrative fine on the company to the amount of SEK 144 million (circa €15.6 million). The SCA claimed TeliaSonera AB, the incumbent telecom operator, was subjecting competing operators in the market for ADSL services to a price squeeze.

Swedish based international telecom operator Tele2 was one of the companies whose complaints launched the SCA’s investigation. Tele2 opened a private enforcement action against TeliaSonera on 1st April 2005, demanding compensation for damages for an amount of approx SEK 2.3 billion (€250 million). Tele2 requested a stay in those proceedings pending the outcome of the SCA’s case against TeliaSonera.

The Stockholm City Court in June 2006 granted Tele2 the right to intervene in the SCA’s case against TeliaSonera. Intervention was granted on the basis of the evidentiary value the ruling will have in the separate case against TeliaSonera.

Intervention in proceedings based on the Competition Act is rare. Only 6 interventions have taken place since the inception of the SCA in 1993 to 2004. A probable cause for the low number is the fact that an intervening party is only allowed compensation for costs in certain types of cases, even when successful.

Source: City Court of Stockholm, case nr T 31862-04, 28 June 2006. (Swedish only).