Vodafone anti-competition claim
Vodafone Group Plc has been accused of direct violations of applicable competition laws by Mobile Trade Stores.
According to the lawyers of Mobile Trade Stores, who are now seeking an intervention by relevant authorities in the EU and Greece on the way in which Vodafone is running its franchise operations across Europe, the case could have a major impact on the way in which Vodafone operates in Europe, including Ireland.
A spokesperson for Mobile Trade Stores said: “The Mobile Trade Stores legal team believes there is prima facie evidence of very serious, hardcore restrictions of competition. The negative consequences of these restrictions have persisted over years.”
Vodafone is being accused by Mobile Trade Stores and chairman Athanasios Papistas of having undertaken a deliberate anti-competitive culture against its franchises in Greece, leading to the gradual termination of the operation of his Vodafone-franchised retail outlets.
EU competition lawyers for Mobile Trade Stores said: “There exists sufficient community interest to alert the EU Commission to a strong possibility of infringements of EU competition law in the present case.”
Among the issues relating, but not exclusive, to the company’s Irish operations, allegedly uncovered by research conducted on behalf of Mobile Trade Stores, are:
* Vodafone Ireland imposes a strict pricing and marketing regime with their franchisees;
* Restrictions by Vodafone Ireland on franchisees include the prevention of franchisees to sell surplus products to other wholesalers or retailers outside Vodafone’s network;
* Margins are fixed and imposed on agents when negotiating handset sales.
Vodafone, however, strenuously denies the allegations.
“The Papistas Group of companies has made various legal and factual claims against Vodafone following Vodafone Greece’s termination of a long-standing commercial relationship,” a Vodafone spokesperson said. “All of the claims are without merit and the purported losses completely fanciful. Vodafone will be defending them vigorously.”
Earlier this year, and in a separate case, Mobile Trade Stores sued Vodafone’s Greek unit for €1.37bn, for damages the company said it suffered when Vodafone cancelled franchise agreements in 2008.
