The PTS’s decision will now be on hold for two months, after the European Commission raised serious doubts about geographical segmentation of the market.
Background: The Swedish regulator PTS is currently reviewing the wholesale broadband access markets (Markets 3a and 3b of the EC’s Recommendation on relevant markets). In May 2019, the PTS published a first draft for consultation with stakeholders; in November 2019, it submitted its decision to the EC for comments. The EC has the power to recommend regulators to amend their decisions before they adopt them. In some cases, it can raise ‘serious doubts’ and require regulators to withdraw a measure altogether.
The EC calls for partial deregulation: This week, the PTS received feedback from the EC about the draft measure. In its comments, the EC objects to the approach the PTS has adopted in regulating the fibre segment of Market 3a. In particular, the EC questions the geographical split adopted by the PTS for the market, and argues that, in those parts of the country where Telia has lower market share, the PTS should refrain from imposing remedies on the operator as it is currently planning to do.
What happens now? The EC’s serious doubts will now trigger an investigation which will also involve the body of European regulators BEREC. The whole process is due to last two months; while this is ongoing, the PTS cannot rule on the matter. While the EC’s objections only relate to fibre, the PTS is also pausing its decision on the copper segment of Market 3a and on the entire Market 3b, which the regulator finds to be related to the case.
