Penalties for breaking phone contracts in Spain

Last July a Spanish court quashed a fine of almost €26 million that the country’s telecoms regulator had imposed on Telefónica. The watchdog had ruled that the terms of certain of Telefónica’s fixed-term contracts for SME customers constituted a restraint on competition. In overturning the penalty, the court accepted Frontier’s argument that the disputed contracts made sound economic sense and did not undermine competition.