EU Investigating Vodafone and T-Mobile

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The EU head office has launched an investigation into mobile phone roaming prices charged in Germany by Vodafone Group PLC and T-Mobile International AG. The EU Commission said it "challenges the high rates" the two companies have been charging other mobile phone operators for international roaming services use of their German networks.

The EU head office said it sent two letters of complaint to T-Mobile and Vodafone "because the Commission believes the companies' practices may be contrary ... to rules on abuse of monopoly power." Foreign mobile operators have to pay the companies' operating tariffs for access to their networks when their own subscribers use their cell phones in Germany. The Commission said such high roaming charges "hurt consumers because they are passed on in full to the subscribers."

It said preliminary investigations started in 2001 found that T-Mobile "abused a dominant position" in Germany between 1997 and 2003 by charging "unfair and excessive prices" to other European operators. EU regulators said they came to similar conclusions with Vodafone for the 2000 to 2003 period.

EU antitrust officials could impose fines of up to 10 percent of each company's annual sales if they are found guilty of abusing their dominant position in the German market.

The Commission said its aim was "to ensure that European consumers are not overcharged when they use their mobile phones on their travels throughout the EU." Both Vodafone and T-Mobile will have an opportunity to address the Commission's allegations in an oral hearing with EU investigators.