Press Release: Digital Agenda: Commission asks Court of Justice to fine Portugal over exclusion of companies from providing universal service

The European Commission asked the European Court of Justice on 24 January 2013 to impose a fine on Portugal because it has not respected a 2010 Court judgment requiring it to follow EU telecoms rules when deciding who should provide universal service in Portugal. The Commission is suggesting a lump sum of € 5 277.30 per day for the period between the 2010 judgement and eventual second Court ruling.

This decision to refer Portugal back to the Court, with a view to imposing financial penalties, follows a previous Court referral decision from the Commission in March 2012 (IP/12/287). The Commission has taken into account the progress made by the Portuguese authorities since then, in particular through the publication of invitations to tender, and has therefore proposed a reduced lump sum.

Under EU law (the Universal Service Directive), basic services must be available throughout the country, including connection to the telephone network at a reasonable price, public pay telephones and emergency telephone numbers free of charge.

The selection of any universal service provider must be based on an efficient, objective, transparent and non-discriminatory procedure. This means that all interested companies should be able to take part in the designation procedure, and no company should be excluded from tendering.

Despite a 2010 ruling of the EU Court of Justice (C-154/09), Portugal has still not designated its universal service provider(s) in line with EU law.