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European UMTS auctions under investigation

By Deborah Schofield

Published: 7 September 2000 12:11 GMT

European competition authorities are investigating claims that auctions of third-generation mobile phone licences have breached regulations in some European Union countries.

According to reports in Reuters, a European Parliament debate regarding fair competition in the telecoms industry yesterday heard Mario Monti, EU Competition Commissioner, confirm that the UMTS auctions are being investigated for possible breach of state-aid regulations.

The move comes in response to two separate complaints. Both French conglomerate Bouygues and Dutch telecoms network operator Versatel lodged objections to auction processes, citing discriminating pricing and 'closed shop' arrangements as barriers to fair competition.

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