Vodafone España v. Telefónica

In 1997, the Comisión Nacional de Competencia (CNC, the Spanish National competition authority) imposed a €4.5 million fine on the Spanish incumbent telecom operator, Telefónica, for an abuse of its dominant position in the Spanish mobile telephony market. According to the CNC, Telefónica signed exclusive distribution agreements to delay the entry of competitors in the market. In 2009, Vodafone España (formerly, Airtel Móvil) claimed compensation from Telefónica for lost profits. Compass Lexecon was retained by Telefónica to assess an expert report on the quantification of the alleged damages. Our team, which included Alejandro Requejo and Patricia Lorenzo, demonstrated that the available evidence did not allow a conclusion that the alleged abuse of dominant position had an effect on Telefonica’s competitors and, therefore, that Vodafone did not suffer any damage. Compass Lexecon’s experts testified before the Spanish Court of First Instance. In April 2011, the Court rejected the claim for damages.