Deutsche Telekom Wins Cable Fees Clash With Kabel Deutschland

Kabel Deutschland Holding AG lost its bid to claim compensation from Deutsche Telekom in a 400 million-euro ($497 million) dispute over cable duct fees.

The Frankfurt higher regional court rejected an appeal by Kabel Deutschland, which claimed Deutsche Telekom overcharged its rival since 2003.

Kabel Deutschland, majority owned by Vodafone Group Plc, had bought Deutsche Telekom’s cable network that year and part of the deal was the fee agreement for the duct use.

Kabel Deutschland argued that Germany’s former phone monopoly abused its market position by continuing to charge that price, a regulated service charge that had fallen over the years of the contract.

The court today ruled it can’t be determined if the price was agreed upon because Deutsche Telekom had a dominant market position.

Kabel Deutschland argued the annual fee of about 100 million euros needs to be cut by two thirds.

The case is OLG Frankfurt am Main, 11 U 95/13 Kart.

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