Competition in the markets for electronic communications networks and services

SUMMARY OF:

Directive 2002/77/EC on competition in the markets for electronic communications networks and services

WHAT IS THE AIM OF THE DIRECTIVE?

It gives every company the right to provide or operate electronic communications services and networks without any restrictions.

KEY POINTS

The directive covers ‘electronic communications services’ and ‘electronic communications networks’. These replace the previous terms ‘telecommunications services’ and ‘telecommunications networks’. The change ensures a single umbrella definition for all services and networks, whether by wire, radio, optical or other electromagnetic means, and covers fixed, wireless, cable television and satellite networks.
It does not cover services providing or exercising editorial control over the content transmitted.
The directive removes European Union (EU) Member States’ ability to grant or maintain exclusive or special rights to a company to provide electronic communication networks or publicly available services.
It requires Member States to ensure that:
- any company may provide electronic services or networks without restrictions;
- a general authorisation to provide services or networks is based on objective, non-discriminatory, proportionate and transparent criteria;
- vertically integrated public undertakings* providing electronic networks and in a dominant position do not discriminate in favour of their own activities;
- any refusal of a request to provide services or networks is fully explained and the company has the right to challenge the decision before an independent body, court or tribunal.

The directive abolishes exclusive or special rights to:

the use of radio frequencies (these must be assigned on the basis of objective, transparent, non-discriminatory and proportionate criteria);
directory and enquiry services;
authorised satellite television networks.

Rules on cable television state that a company that provides public electronic networks may not use the same legal name if it:

is government-controlled or has special rights;
has a dominant role in the market;
operates a cable television network under special or exclusive rights.

The directive repealed Commission Directives 90/388/EEC and 94/46/EC.

FROM WHEN DOES THE DIRECTIVE APPLY?

It has applied since 7 October 2002 and had to become law in the Member States by 24 July 2003.

BACKGROUND

The EU’s electronic communications policy improves competition, drives innovation and boosts consumer rights within the European single market.

The directive is part of the regulatory framework that entered into force on 25 July 2003. The other components are:

Directive 2002/19/EC on access to, and interconnection of, electronic communications networks and associated facilities (the access directive), later repealed and recast by Directive (EU) 2018/1972 establishing the European Electronic Communications Code (summary);
Directive 2002/22/EC on universal service and users’ rights (the universal service directive), later repealed and recast by the above mentioned Directive (EU) 2018/1972 (summary);
Directive 2002/58/EC on the protection of privacy in the electronic communications sector (the privacy and electronic communications directive) (summary);
Decision 2002/676/EC on a regulatory framework for radio spectrum policy (the radio spectrum decision) (summary).

KEY TERMS

Vertically integrated undertaking. An undertaking where the same person or persons exercise control, either directly or indirectly.

MAIN DOCUMENT

Commission Directive 2002/77/EC of 16 September 2002 on competition in the markets for electronic communications networks and services (OJ L 249, 17.9.2002, pp. 21–26).