April / May 2001

Finland: 'Subscription ownership' discounts incompatible with Competition Act

01 April 2001

The Competition Council found in December that telephone service discounts granted by Päijät-Hämeen Puhelinyhdistys, a dominant local operator, to its subscribers as dividends for their subscription-based ownership in the operator violated the Competition Act. Such discounts were regarded as ‘loyalty’ discounts binding customers to the operator and serving as an entry barrier to the market for fixed telephone services.