TELECOM-FATTURAZIONE PER CHIAMATE SATELLITARI E/O A NUMERAZIONI SPECIALI
PRESS RELEASE
PRESS RELEASE
TELEPHONY: ANTITRUST AUTHORITY FINES 13 COMPANIES OVER IMPROPER COMMERCIAL PRACTICES. HUNDREDS OF CONSUMERS BILLED FOR INTERNATIONAL SATELLITE CALLS OR CALLS TO SPECIAL NUMBERS THEY NEVER MADE. TOTAL FINES OF €2,430,000
Fines imposed, according to their various roles, on Telecom Italia, Elsacom, CSINFO, Eutelia, Karupa, Teleunit, Voiceplus, Drin TV, AbcTrade, Telegest Italia, Aurora Uno, OT&T and Ivory Network Limited
The Italian Competition Authority, at its meeting on 30 October 2008, decided to fine 13 companies (Telecom Italia, Elsacom, CSINFO, Eutelia, Karupa, Teleunit, Voiceplus, Drin TV, AbcTrade, Telegest Italia, Aurora Uno, OT&T and Ivory Network Limited) that, in differing roles and with different degrees of responsibility, used improper commercial practices in billing a very large number of consumers for international satellite calls and calls to special numbers they were unaware they had made. The fines total Euro 2,430,000.
This proceeding was launched following receipt, beginning in November 2007, of hundreds of written complaints and telephone calls to the call center from consumers complaining of being billed for calls and/or connections to “international satellite” numbers and “special numbers of other operators” which they had never made; it emerged during the investigation that these were mostly due to the automatic installation of “dialers”, a sort of virus that infects the computers of unsuspecting users as they browse the internet. Specifically, a “dialer” is a special self-executing program that changes the internet connection parameters set on the user's computer, replacing the telephone number for dial-up connections with an international satellite or special number carrying a surcharge.
During the course of proceedings, the Antitrust Authority introduced urgent precautionary measures to protect consumers from having their telephone lines cut off and being obliged to pay the contested amounts.
The Authority held that Telecom, Elsacom, CSINFO, Eutelia, Karupa, Teleunit, Voiceplus, Drin TV, ABC Trade, Ivory Network, Telegest Italia, OT&T and Aurora Uno, in different roles and to different degrees, all played a part in the extra-charge services.
More specifically: 1) Telecom is a supplier of electronic communications services; 2) Elsacom is the Italian manager of the satellite numbers reported by consumers; CSINFO, Eutelia, Karupa, Voiceplus and Teleunit are assignees of the non-geographic numbers reported; 3) Drin TV, AbcTrade, Telegest Italia, Aurora Uno, OT&T S.r.l. and Ivory Network Limited are licensed users of the satellite and non-geographic numbers (so-called service centres).
The Authority examined the practices adopted in the light of the different roles played within the spectrum of chargeable services. As regards non-geographic numbers, the amounts billed to end users by Telecom as access operator are almost entirely passed on to the assignee companies which, in turn, pay the service center a percentage according to the agreement between them. As regards the satellite numbers, the charge applied to the end consumer is determined by Telecom alone, while Elsacom, independent of the amount charged to the end user, receives a fixed sum that is then in part passed on to the service centers according to the contractual arrangement between them.
Role of Telecom Italia.
Telecom Italia, which represents the last level in this supply chain, even though it does not have any direct and immediate legal and contractual responsibility toward consumers to whom injury was caused, failed to display professional diligence in its conduct. Telecom was certainly aware of the existence of cases of improper use of satellite and special numbers linked to the abusive installation of dialers. In its role as supplier of electronic communications services responsible for the network, it should have taken steps to contain the risk of improper installation by third parties of dialers on its customers' electronic equipment. Moreover, the company did not adopt adequate measures to inform and warn end users. On the contrary, it solicited payments without distinction, threatening legal action with regard to traffic directed to non-geographic numbers, or going as far as to cut off lines over traffic directed to international satellite numbers.
Role of the owners of satellite and non-geographic numbers: Elsacom S.p.A., CSINFO S.p.A., Eutelia S.p.A., Karupa S.p.A., Teleunit S.p.A. and Voiceplus S.r.l.
The “international satellite” numbers assigned by the ITU (International Telecommunication Union) to Globalstar LLC, are exclusively managed in Italy by Elsacom S.p.A.. The “special numbers of other operators” were assigned by the Italian Communications Ministry to the companies CSINFO, Eutelia, Karupa S.p.A., Teleunit and Voiceplus. These companies sub-contracted out the numbers to third parties, the so-called service centers, to provide chargeable services but failed to ensure adequate tools were in place to protect against improper use by third parties to the detriment of consumers. Amongst other things, they did not fulfil the legal requirement to ensure that the service centers respected the prohibition on turning over the numbers to third parties, thus effectively facilitating the creation of the phenomenon.
Role of the licensed users of satellite and special numbers:Drin TV S.r.l., AbcTrade S.r.l., Aurora Uno Sro, Telegest Italia S.r.l., OT&T S.r.l. and Ivory Network Limited (the so-called service centers).
Regulations expressly prohibit service centers from passing on to third parties the numbers received from the owners. The aim of this rule is to limit the number of operators that can use the numbers to offer chargeable services to the public. This is the only way to check that the numbers are being used correctly and to identify parties responsible for any violations. These companies, by allowing third parties to use the numbers in violation of regulations, effectively facilitated the creation of the phenomenon of improper use by those third parties. They therefore bear responsibility toward end users for demands for payment of electronic communications services not knowingly requested by those consumers.
The following are the individual fines imposed:
- Telecom Italia: €325,000 (three hundred and twenty-five thousand euros);
- Elsacom S.p.A.: €270,000 (two hundred and seventy thousand euros);
- CSINFO S.p.A.: €255,000 (two hundred and fifty-five thousand euros);
- Eutelia S.p.A.: €215,000 (two hundred and fifteen thousand euros);
- Karupa S.p.A.: €255,000 (two hundred and fifty-five thousand euros);
- Voiceplus S.r.l.: €255,000 (two hundred and fifty-five thousand euros);
- Teleunit S.p.A.: €180,000 (one hundred and eighty thousand euros);
- Drin TV S.r.l.: €115,000 (one hundred and fifteen thousand euros).
- AbcTrade S.r.l.: €115,000 (one hundred and fifteen thousand euros).
- Telegest Italia S.r.l.: €115,000 (one hundred and fifteen thousand euros).
- OT&T S.r.l.: €115,000 (one hundred and fifteen thousand euros).
- Aurora Uno Sro: €115,000 (one hundred and fifteen thousand euros).
- Ivory Network Limited: €100,000 (one hundred thousand euros).
Rome, 22 November 2008