ASSOCIAZIONE ITALIANA INTERNET PROVIDERS/TELECOM ITALIA (Start of full phase investigation)
PRESS RELEASE
Following a complaint from the Associazione Italiana Internet Providers, at its meeting on 10 July 1998 the Antitrust Authority ordered an inquiry into Telecom Italia S.p.A. for alleged abuse of dominant position on the Internet services markets.
With the sale of the TIN and Interbusiness services Telecom Italia totally dominates the Internet access services market for residential and business customers.
As the former monopoly-holder of the telephone service Telecom Italia also manages all the switched and dedicated telephone access links to the Internet on the Italian market, and is the main supplier of network facilities to its competitors, the Internet Service Providers.
The conduct of Telecom Italia forming the object of the complaint which will be investigated as a possible infringement of Section 3 of the Antitrust Act, is alleged predatory pricing for the supply of Internet access services, the application of discriminatory terms and conditions for the supply of connectivity to the Internet Service Providers against which it competes, and the unlawful exploitation of the competitive advantages it enjoys as a result of its dominant position on the markets connected with fixed telephone services and the switched public infrastructures.
Rome 17/07/1998