During the reported period, the Office assessed and decided on the conduct of the company Slovenské telekomunikácie, a.s. [Slovak Telecommunications] (hereinafter referred to as "ST, a.s.") related to the enforcement of inappropriate business conditions on the market of telecommunication services based on the ADSL technology provided via the fixed telecommunication network with local lines (wholesale service) to Internet service providers. DSL-based technologies, including ADSL, can only be used in the fixed public telecommunication network (PVTS) with local lines, as a consequence of which PVTS with a local line ending in the user's location forms an inevitable part of each connection to the Internet via ADSL.

 

It is practically impossible to provide ADSL-based telecommunication services without the enterprise ST, a.s. at present. In this case, the dominant entity, ST, a.s., operated on the wholesale service market in a non-competitive environment, as well as on the related market of the provision of high-speed data transmission on the basis of ADSL technology for end users (retail service), where this company could meet with competitors when providing the aforementioned service to end users. 

 

The Office's task within these proceedings was to prevent the dominant player on the wholesale service market from gaining an inappropriate market advantage resulting from restriction of competition on the related retail service market. The inappropriate conditions set by the company ST, a.s. for the provision of the basic service resulted in the elimination of competition on the related market. The inappropriate conditions of entry into the market of the provision of Internet services with high-speed data transmission on the basis of ADSL technology to end users were clearly aimed at closing the relevant market and had a considerably negative impact on the possibility of developing competition in that market, which was in great demand from the viewpoint of other competing companies, given its high attractiveness to end users. The conduct of the enterprise ST, a.s., which, by setting inappropriate conditions for the supply of the wholesale service, in fact, prevented and eliminated any competition on the related/affected retail service market, would result in a situation where this dominant company, due to the setting of inappropriate conditions, would act as the only player on the related retail service market as well, not as the result of natural competition, but because of abuse of its dominant position. The Office assessed this conduct as abuse of a dominant position and imposed a fine on the dominant company ST, a.s. for the violation of the law resulting from the aforementioned restrictive practice.