The Portuguese State, i.e. the Portuguese taxpayer, has been punished for not complying with an EC judgment in 2010 over the liberalisation of the telecommunications market which should have seen PT lose its monopoly.
Portugal’s dared not do anything to disrupt the inefficient, cozy world of Portuguese Telecom which led Brussels to launch a legal challenge, culminating in the conviction of the Portuguese State by the European Court in October 2010.
The EU Court of Justice now has sentenced Portugal to pay a €3 million fine for failing to execute the 2010 judgment and free up its telecommunications market.
In addition, Portugal has been sentenced to pay a daily fine of €10,000 as of today until full compliance with the decisions of the judges has been attained.
In 1995, the Portuguese Government signed a contract with Portugal Telecom that guaranteed the company a monopoly. The contract was, and remains, valid until 2025, but the liberalisation of the telecoms market across Europe in 2003 stipulated that EU member countries should deregulate all 'universal service' deals.
The fact that Portugal did nothing led Brussels to launch a legal challenge, culminating with a first conviction of the Portuguese State by the European Court in October 2010.
Since then, despite pressure from the European Commission under the Troika adjustment programme, Portugal only launched a new tendering process in October 2012 and the repeal of the original PT deal only came into force in June 2014.
However, the contract signed with PT in 1995 remains in force as it has not been repealed, and the state must now pay €10,000 per day until it is.
The Court considered the 28 month delay by Portugal in implementing the judgment as "excessive."
Portuguese taxpayers who will be paying the fine rightly may view the actions of the Portuguese government situation as sloppy, leading as it has to an avoidable waste of money.
