UK-based telecom colossal Vodafone has filed another lawsuit against Telefonica claiming damages of £530 million for allegedly exploiting its leading position in Spain, representing the latest chapter to the 12-year battle which started in 1996.
According to the claim, Telefónica Movíles hampered the growth of Airtel in Spain, a mobile phone subsidiary Vodafone acquired in 2000. Telefónica allegedly coerced mobile phone retailers to sign exclusivity contracts in the late 1990s. After Airtel started operating, these agreements blocked a segment of potential business accounting for more than 50 percent of market sales, said Vodafone
The latest damage claim slapped by Vodafone spans the actions of Telefonica across the years between 1995 and 1999, which Vodafone says affected Airtel. Vodafone’s claims are backed by a 2006 Spanish Supreme Court ruling which found Telefónica guilty of violating competition rules between October 1995 and December 1999. |