Ericsson Nikola Tesla received a fine of 785.6 thousand euros from the regulatory agency

Ericsson Nikola Tesla (ENT) reported on Thursday that it received a decision from the Competition Protection Agency (AZTN) the day before, which determined that the company and several other involved entrepreneurs participated in a prohibited agreement in the market for home telephone exchanges and systems (PBX), for which it was fined 785,570 euros.

As reported, the violation relates to alleged participation, nearly 10 years ago, in a prohibited agreement in the market for the sale and maintenance of home telephone exchanges and systems (PBX) involving several entrepreneurs, with the average annual value of goods and/or services sold by ENT in that market amounting to about 0.1 percent of the company’s total revenue.

– ENT firmly believes that it did not commit the alleged violation and emphasizes that the decision is not final. Furthermore, ENT believes that the statute of limitations has expired regarding the alleged violation and that the Agency was obliged to suspend the proceedings. ENT will file an administrative lawsuit against the Agency’s decision on procedural and substantive grounds and will contest its validity with legal and factual arguments – the company stated in its announcement on the ZSE.

They add that they have been imposed a monetary fine of 785,570.58 euros, and that amount or a lesser amount will eventually be required to be paid after the conclusion of the administrative dispute before the High Administrative Court of the Republic of Croatia, i.e., after the Agency’s decision becomes final. ENT emphasizes that there is a likelihood that the Agency’s decision will be entirely annulled, in which case ENT will not be obliged to pay any amount.

– Provisions for potential liabilities, including this procedure, have already been recorded in the company’s books and almost fully cover the amount of the non-final monetary fine – it is stated in today’s announcement.