The European Commission is unsatisfied with the compensation schemes implemented by the Portuguese regulator to fund Universal Service.
Background: the Universal Service Directive of 2002 allows EU states to introduce mechanisms to compensate the provision of Universal Service. Most states have done so since 2007 – and Portugal started in 2012.
What’s new? The EC believes Portugal’s way to do it is not in line with the requirements of transparency, non-discrimination and “least market distortion” of the Directive, since regulators are asking operators to make an extraordinary contribution in 3 consecutive years for net costs of universal service incurred in the past.
What’s next? The ECJ will now have to rule on the case. It is worth noting that the EC had opened the infringement proceedings against Portugal in February 2015, and sent a “reasoned opinion” in April 2016, but still finds Portugal to be non-compliant.
