Teleco's Pension Rule Exemptions Under Fire

Law360, New York (November 29, 2007, 12:00 AM EST) -- The European Union's competition watchdog has launched a probe into allegations that British telecommunications operator BT Group PLC receives special treatment under government-guaranteed exemptions covering the company's pension liabilities.

In an announcement Thursday, the European Commission said the “in-depth” investigation would examine whether the exemptions are legal, and what effect they have on competition in the EU's telecommunications market.

Under the guarantee, the phone company is excused from paying a levy to the U.K.'s Pension Protection Fund and is covered for its employee pension liabilities in...
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