MEO is fined €84m for striking an anticompetitive agreement with the country’s smallest operator, NOWO.
An €84m fine for MEO: MEO and NOWO are respectively the largest and the smallest fixed operators in Portugal. On 3 December 2020, the Portuguese competition authority (AdC) imposed an €84m fine on MEO for establishing a cartel with NOWO, which is also an MVNO hosted on MEO’s mobile network.
How did the cartel work? NOWO agreed not to launch mobile services outside the areas where it provides fixed services. This reduced competition in areas such as Lisbon and Porto. NOWO also committed to avoid marketing offers for €5 or less, to implement price increases, and to reduce the quality of fixed-mobile bundles. In return, MEO undertook to improve the conditions of NOWO’s MVNO access contract.
MEO is likely to appeal the ruling: The fine only applies to MEO because NOWO used the ‘Leniency Program’ under which the first company that reports participating in a cartel can avoid a fine. In a statement, MEO said it will leave legal advisors to comment, but also noted that regulators are taking an ‘irresponsible position’ showing little consideration for private investment in the country.
