The EC first issued a warning to the FNA in April this year over its plans to raise fees – which the EC feared would lead to rates more than 80% higher than in other EC countries.
The FNA has failed to address these concerns and the EC now expects Germany’s existing rates to be detrimental to plans for creating a single telecoms market in Europe.
Calls on German networks are only be able to be connected by the operator on the receiving end, meaning that operator has a monopoly on the price.
“The vast majority of the EU Member States apply termination rates which are beneficial for consumers and competition,” said Neelie Kroes, VP of the EC.
“I insist that Germany complies with telecoms regulation and follows the same approach as other regulators – it is not acceptable that one regulator continues to hamper the proper functioning of the single telecoms market," Kroes added.
The EC has now given the FNA another three months to amend its tariffs. If it fails to do so a more formal warning will follow, with the potential for court proceedings and fines.
