Complaint to the Swedish Competition Authority: Hässleholm municipality's refusal to enter into land agreements and grant permission for laying fiber

By refusing land agreements and excavation permits for laying fiber in the municipality because the municipality wants to protect its own fiber investment, Hässleholm municipality completely excludes competition from other players. IT&Telekomföretagen has reported Hässleholm municipality to the Swedish Competition Authority, as Hässleholm municipality's actions are of fundamental importance and risk, if not stopped, spreading to other municipalities.

Introduction

(As representatives of) IT&Telekomföretagen, we hereby submit the following complaint regarding Hässleholm Municipality's decision not to enter into land agreements with, or grant excavation permits to, operators active in the network infrastructure market for dark fiber and connection of users in which the municipality itself is active. The reason for this procedure is that the municipality wants to protect its own activities from competition in order to safeguard its own financial plan.

The procedure results in a total exclusion of private actors who wish to establish fiber operations in the municipality of Hässleholm, including actors who intend to build an open, neutral and comprehensive fiber network in the municipality and have agreements and expressions of interest from customers.

The procedure is a clear departure from the view that characterizes the Government's broadband strategy and the joint principles of the Swedish Competition Authority, PTS and SKL for municipal initiatives in the broadband area. Here, the starting points are instead the preservation of free competition, that municipalities contribute with land agreements and excavation permits and do not establish their own fiber networks unless this is justified because public interests cannot be met by market players.

As far as is known, this is the first time a municipality has taken a principled decision to refuse land contracts and excavation permits in order to protect its own business from competition. The action has attracted considerable media interest.

IT&Telekomföretagen's members also experience fairly extensive problems in various municipalities when it comes to obtaining land contracts and excavation permits within a reasonable time and on reasonable terms, and in many cases the municipal city networks are given better terms than competing private operators. IT&Telekomföretagen therefore sees a tangible risk that other municipalities will follow Hässleholm Municipality's actions and that it is therefore urgent that the Swedish Competition Authority opens a supervisory case to investigate and take clear measures against Hässleholm Municipality.