The National Authority for Management and Regulation in Communications (ANCOM) announces the completion of the European consultation phase regarding the draft decisions on identifying the relevant market for local access services at fixed locations and designating DIGI Romania S.A. as a provider with significant market power in 5,894 localities across Romania. The European Commission considers ANCOM’s regulation to be proportionate and justified.
Opinion of the European Commission
The European Commission’s decision follows an in-depth Phase II investigation, which included contributions from the Body of European Regulators for Electronic Communications (BEREC) and observations from third parties. The process was finalised through continued dialogue with ANCOM.
Although the European Commission initially expressed reservations regarding the Authority’s proposed measures, subsequent clarifications and further analysis enabled ANCOM to demonstrate the need for regulatory intervention to ensure an effective competitive environment within the A1 sub-national market, defined by the 5,894 localities.
Prior to the consultation with the European Commission, BEREC and the national regulatory authorities of other EU Member States, ANCOM’s proposal underwent an extended national consultation process.
ANCOM’s measures to identify and regulate the relevant market for local access at fixed locations
ANCOM’s analysis showed that, in 5,894 localities, DIGI Romania S.A. is either the sole provider of fixed internet access services or the market leader, with a total share exceeding 97%, which creates a risk of market power abuse over a 5-year time horizon. These localities have a population of 4.6 million inhabitants, respectively 1.7 million households.
To ensure efficient and balanced competition on the retail market in these localities – by mitigating the risk of abuse by a dominant operator and by enabling end users to access a wider range of providers offering diverse and high-quality services – ANCOM has proposed that DIGI Romania grant third-party access to its network at the wholesale level, under reasonable and non-discriminatory conditions, at fair rates, so that they could provide internet access services to end-users.
In the coming period, ANCOM will continue the steps regarding the proposed regulatory measures. The full text of the European Commission’s decision is available on CIRCABC.