News : Oi Fined BRL in Vesper Competition Suit
Rio de Janeiro, Brazil, March 15, 2015 -- Brazilian operator Oi was ordered by the Administrative Council for Economic Defense (Cade) to pay a fine for anticompetitive conduct against Vesper, now known as Embratel. Oi said it had yet to see the details of the decision, but would consider an appeal, reports O Estado de Sao Paulo. The appeal should be filed with Cade itself, where the case took almost ten years to complete.
The regulator found that Oi abused its dominant position. In the early 2000s when the case started, the company had over 90 percent of the fixed telephony market in the states of Rio de Janeiro, Minas Gerais, Espirito Santo, Bahia, Sergipe, Alagoas, Pernambuco, Paraiba, Rio Grande do Norte, Ceara, Piaui , Maranhao, Para, Amapa, Amazonas and Roraima. Oi was found to have monitored calls from customers to the call centre of a competitor, Vesper, and offered the customers plans to prevent them switching to the rival.
Posted by Veronica Silva Cusi, news correspondent
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About Oi (telecommunications):
Oi is Brazil’s telecommunications service provider, with a fully integrated nationwide presence and 70 million customers. Oi offers fixed and mobile, broadband, pay TV, data transmission and internet provider services. Oi has a contact center in Brazil, with 40,000 agents in 10 different locations all over the country.
Embratel is a major Brazilian telecommunications company headquartered in Rio de Janeiro. The company was the long distance arm of Telebras until it was bought by the U.S. company MCI Communications for 2.65 billion reais during the 1998 break-up of Telebras. However, MCI Communications went bankrupt in 2003. Since 2003, it is owned by América Móvil, the Mexican telecommunications giant.
Published: Thursday, March 19, 2015