CNMC dismissed the complaints against the rising price of Movistar Fusion

The CNMC has determined that the price increase of Movistar Fusion is not a problem of competition.

Do something more than a month Movistar announced that tripled the speed href=”https://hipertextual.com/2015/03/fibra-telefonica”> fiber and migration to all ADSL customers optical fiber without charge, which was very well received by users and existing customers of the company. However, along with the announcement of higher speed, the operator also announced a price increase of 5 euros for current rates, unlike the price increase has been a movement has aroused numerous controversies between users and consumer associations, who have seen this as a move that could even undermine free competition.

With this situation, and following the above complaints by consumer associations the rising price of Movistar Merger with National Commission of Markets and Competition, the regulatory body has issued official statement to which access has been Hypertext, which specifies that the CNMC, referring to a letter of complaint of the day April 7, 2015 against Telefónica, for modifying the conditions of service price advantage Movistar Fusion modification of the technical conditions thereof (the famous climb speed), is not competent to take any action against Telefonica, assuming valid in terms of competition, the performance of call.

The price increase is not an act of unfair competition Arguments the CNMC to considered valid (always within the limits of performance of its powers) the price increase of converged Movistar rates are based on facts which basis of the complaint, are not an act of unfair competition under Law 31/1991 of 10 January, Competition as the Competition Directorate of the regulator finds that the price increase is not likely to affect the public interest in free competition.

In addition, with regard to one of the main complaints of users regarding the prices of Movistar Fusion were forever , not assumed at the time a competitive advantage the operator, since according to the letter of the CNMC other operators also have used the same business strategy, since the breach of this required does it is a significant competitive advantage, while this modification by phone unilateral contractual conditions (price increase melting) gives the right to all consumers and users affected by this amendment to terminate the contract without penalty, as permitted by Article 47.1b of the General Act Telecommunications (Law 9/2014):

The specific rights of end-users of networks and electronic communications services shall be established by Royal Decree to regulate (…)

– The right to terminate the contract at any time. This right includes freedom to resolve in advance without penalty in the event of modification to the contractual conditions imposed by the operator on valid grounds specified in that without prejudice to other causes of unilateral termination.

Therefore, and as Telefonica can break the contract if the consumer does not agree, and allows the result of the unilateral modification, change communications service provider without facing no penalty, the CNMC has estimated that it is not competent to take any action against Telefonica for this modification, so that users seem to have to find alternatives if they are in compliance.

We’ll see how the issue is being resolved in the future, but many of the users and consumers associations have urged its members to file complaints against the operator, and apparently, this is unlikely to end here, at least by the Users who do not accept the price increase Movistar

Hipertextual