The Italian subsidiary of Vodafone Group Plc currently seeks damages of up to Eur1 billion equivalent to US$1.3 billion. Vodafone said Telecom Italia SpA abused its market position from 2008 to 2013, "with the intention and effect of impeding growth in competition in the Italian fixed-line market."
Telecom Italia managed the largest fixed-line telephone system in Italy. It rejected the claim and said it would appeal in opposition to the fine. In May, the competition authorities of Italy fined the company Eur104 million or US$138 million for abusing its foremost market position.
Vodafone said that its rival squeezed its capability to vie in the Italian market and caused Vodafone "to lose existing and potential customers through predatory activities". It claimed that it was compelled to pay "artificially high costs in order to compete in the market". Vodafone Italy added that it was restricted to grow its own fixed-line enterprise because of the abuse done by Telecom Italia. The lawsuit was filed at Milan's Court.
British Vodafone Group currently owns 77% of Vodafone Italy. The rest of the shares is held by Verizon, the group's partner.
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