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EU court rejects challenge to cell phone cap

By (Breaking Legal News)

The European Union's highest court rejected a challenge Tuesday by four British cell phone companies to a Europe-wide price cap on fees for using a phone abroad.

The British branches of Vodafone, Telefonica O2, T-Mobile and Orange had argued against the EU's imposing maximum price limits for "roaming" charges or extra fees for making or receiving calls outside the user's home nation.

The European Court of Justice dismissed their arguments, saying the EU's executive commission did not abuse its powers when it fixed limits for roaming fees across the 27-nation bloc in 2009.

Europeans have long complained about high roaming fees they were being charged.

"That high level of retail charges had been regarded as a persistent problem by public authorities and consumer protection associations," the court said in a statement.

It said the average level of roaming charges in the European Union was euro1.15 ($1.37) per minute, more than five times the actual cost that telecommunications companies paid to transfer the calls to each other.

The court also backed the maximum price set by EU regulators, saying they had carefully examined the economic impact.

Full post as published by Breaking Legal News on June 08, 2010 (boomark / email).