The European Commission launched legal action against Germany on February 26 over a new German telecommunications law which European Union regulators fear will give Deutsche Telekom an unfair advantage over its rivals.
The EC has given Berlin 15 days to respond to its formal warning, the first step of legal action under "fast-track" procedures, instead of the usual two months. The EU's executive arm says that the telecoms law, which went into effect on February 25, effectively exempts a fast internet access network that Deutsche Telekom is building from competition under a so-called "regulatory holiday".
EU regulators decided to take the action after repeated warnings about the law were ignored and German lawmakers went ahead and enacted it. "I regret that Germany has chosen to ignore the Commission's concerns about this new telecom law despite several clear warnings from the Commission," said EU Telecom Commissioner Viviane Reding. "The granting of regulatory holidays to incumbent operators is an attempt to stifle competition in a crucial sector of the economy and in violation of the EU telecom rules in place since 2002." Along with Poland, Germany faces the highest number of EU legal proceedings against it with six pending cases.