State monopoly watchdog fines TP SA record zl.54 mn

The state-run monopoly watchdog Office for Competition and Consumer Protection (UOKiK) has slapped a record-high fine of zl.54 million on Telekomunikacja Polska (TP SA) for, according to the office, monopolistic practices. After UOKiK officials concluded that TP SA's long-distance connection fees were 40.5% higher than those of EU countries, in July 1998 they demanded that TP SA lower the prices of these services, upon which TP SA introduced four reductions. Despite this, the office contends that the telecoms giant's prices are still too high. The UOKiK is therefore asking TP SA to pay 1% of its revenue for each month it refuses to subordinate to the its decision. Michal Potocki, a TP SA representative, said that TP SA did not agree with the accusations and would most likely appeal the decision to the anti-monopoly court. Until a decision is handed down by the court, TP SA would not be obligated to pay the fine to the Treasury. According to the director of the Telecoms Regulations Office, Andrzej Plachacki, TP SA is looking to benefit from its dominant market position as long as possible. In his opinion, TP SA's lowering of long-distance fees by an average 13%, planned for Feb. 1, was prompted by the sector's upcoming liberalization. (Gazeta Wyborcza, p.1) A.D.