Maroc Telecom Accused of Violating Rules of Competition

Maroc Telecom Accused of Violating Rules of Competition
TT

Maroc Telecom Accused of Violating Rules of Competition

Maroc Telecom Accused of Violating Rules of Competition

Morocco’s National Agency of Telecommunications Regulation (ANRT) has issued its decision in the dispute between telecom operators over access to the local loop unbundling (LLU) and the joint use of high-frequency internet and fixed broadband.

The ANRT said that Maroc Telecom has abused its dominant position in the market by hindering competitors' access to unbundling on its network and the fixed market since 2013.

Maroc Telecom, Morocco's leading operator, has been fined 3.3 billion dirhams ($344 million) for anti-competitive practices, the country’s regulator said on Monday.

The company may face further daily sanctions if it does not comply with the decision, the regulator said, adding that such measures aim to boost competition in fixed broadband.

Maroc Telecom said it would appeal the decision. The fine, to be paid to the state treasury, compares with the $312 million profit reported by Maroc Telecom in H1 2019.

ANRT had urged Maroc Telecom in 2016 to abide by regulations governing local loop unbundling.

Two years later, a rival operator filed a suit against Maroc Telecom, accusing it of breaching competition rules.

Zain subsidiary Inwi (formerly Wana) claimed that Maroc Telecom had hindered its rivals’ access to LLU and fixed broadband since 2013, and following its investigation the ANRT concluded that Maroc Telecom had abused its dominance in the market to this effect.

In 2014, the ANRT issued its guidelines for LLU which obliged Maroc Telecom to host rivals’ equipment in its existing cabinets, as well as build out multi-operator cabinets in future deployments. It was also required to provide wholesale tariffs for other operators using a virtual unbundled local access (VULA) model.

Maroc Telecom will now have to introduce these measures, in addition to paying a fine to the Treasury.

Maroc Telecom, which is listed on the Casablanca Stock Exchange and Euronext Paris, is 53 percent controlled by the UAE’s Etisalat, with the Moroccan state owning 22 percent.

It operates subsidiaries in Benin, Burkina Faso, Ivory Coast, Gabon, Mali, Mauritania, Niger, Togo, and the Central African Republic.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.