Commission to sue Telecom over loyalty offers

Published: 10:04AM Friday November 06, 2009 Source: ONE News

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  • Commission to sue Telecom over loyalty offers (Source: ONE News)
    Source: ONE News

The Commerce Commission says it will sue Telecom over loyalty offers made by the company's wholesale business unit.

The commission alleges Telecom breached its obligation not to discriminate between service providers in three of the company's loyalty offers between December 2008 and July 2009.

"The commission considers that breaches of Telecom's Separation Undertakings have the potential to seriously harm competition in telecommunications markets and undermine or deter efficient investment in telecommunications infrastructure," the commssion said in a statement on Friday.

The commission says it also received separate complaints on the matter.

If the High Court was to find against Telecom, the company could face penalties of up to $10 million for each breach, the commission says.

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