AGCM

PRESS RELEASES

FINES TO TELECOM, WIND, VODAFONE AND H3G FOR “PREMIUM SERVICES” AT A PREMIUM

The Italian Competition Authority (ICA) has imposed on the main operators in the mobile communication sector (Telecom, Wind, Vodafone and H3G) a fine equal to EUR 1.75 million each to Telecom and H3G and to EUR 800 000 each to Wind and Vodafone, for having adopted unfair commercial practices in the marketing of premium services used through the internet from a mobile terminal.  On account of the significant effects of the conduct used, H3G was made to publish an extract of the measure.

Throughout 2014, ICA received many reports through which consumer associations and mobile telephone users denounced the unsolicited supply, and the relative debiting by the operator of the telephone SIM card, the premium rate services (the so-called premium services, such as games and video) accessible during the navigation in mobility through banners, pop-ups and landing pages.

Even on the basis of what has emerged in the course of inspections carried out on the insistence of the Guardia di Finanza (Antitrust Group – Special Protection markets), the Authority has ascertained that the four operators have implemented an unfair commercial practice due to two measures: on the one hand, the omission of information about the fact that the mobile phone contract signed allows the SIM to receive beforehand the premium services, as well as about the existence of a selective blockade to prevent such receipt and the need for the user who wants to take advantage of it by having to turn through an explicit request for membership to the blocking procedure; on the other hand, adoption by the mobile operator of behaviour classified as aggressive, consisting in the implementation of an automated service activation and billing without any authorisation from the customer to pay, and to any check on the reliability of the activation requests from parties such as foreign service providers on the contractual relationship between the user and the operator.

The practice against H3G and Tim was divided into further conduct consisting in the dissemination of messages that omit relevant information or that determine the access and the activation of the premium service without an express manifestation of will by the user.

According to Antitrust, the responsibility of the four companies results – besides directly from the adoption of this conduct – even from other factors: the operators derive a specific economic advantage from the marketing of the premium services, as they share the revenues with service suppliers, retaining a high percentage.  Furthermore, they have proven to be amply aware about the existence of activations and the charges for services not required by its mobile customers.

Under the Consumer Code, the ICA has rated this practice contrary to professional diligence and likely to appreciably distort the economic behaviour of the consumer.  The Authority has thus banned the spread or continuation, as well as impose sanctions, establishing that the operators communicate within 60 days the steps taken to comply with the notice.

Rome, 21 January 2015