E.C. Decries German Telecom Bill

Law360, New York (May 17, 2006, 12:00 AM EDT) -- In a move that the European Commission has labeled illegal state aid, the German government has passed a bill that allows Deutsche Telekom AG to deny broadband access to its competitors.

The bill says that Deutsche Telekom’s €3 billion broadband system is exempt from regulation and that the company is not obligated to offer access to the network to rival companies.

The E.C. promptly voiced its opposition to the bill, claiming it offers Deutsche Telekom illegal state aid.

The Commission also threatened to take legal action...
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