A court has found that the framework conditions for the 2019 5G auction were unlawful. This could have far-reaching consequences for the mobile communications market in Germany.
The Cologne Administrative Court has ruled that the rules of the multi-billion dollar 5G mobile phone auction from 2019 were unlawful. The mobile phone providers Freenet and EWE Tel, who felt disadvantaged by procedural and balancing errors, had filed a lawsuit against the regulations. The ruling has significant consequences for the mobile phone market and the companies involved.
Political influence and consequences
At the heart of the legal dispute was the question of whether the then Federal Ministry of Transport, under the leadership of Andreas Scheuer (CSU), had unlawfully influenced the framework conditions of the frequency auction. Four large telecommunications companies acquired frequencies worth a total of 6.5 billion euros and committed themselves to strict expansion targets, while smaller providers such as Freenet and EWE Tel were disadvantaged.
The Cologne court ruled that politicians had unlawfully influenced an actually independent authority. This confirmed the accusation of a political deal in which network operators were obliged to meet tough expansion targets but were treated leniently on the issue of network leasing. Although the administrative court did not allow further appeals, the Federal Network Agency can try to get the appeal to be approved by the Federal Administrative Court. According to a spokesperson for the authority, no negative effects on mobile network expansion are expected.
FDP economic politician Houben: ““A resounding slap in the face for Scheuer”
Freenet explained: “Almost six years after the decision of the President's Chamber, there is finally clarity. The court has documented that the negotiation requirement only found its way into the President's Chamber decision due to unlawful influences.” EWE Tel also welcomed the decision and stressed that it strengthens an independent Federal Network Agency and, in particular, competition in the mobile communications market. “We assume that the Federal Network Agency will use the ruling as an opportunity to review important decisions,” said Norbert Westfal, spokesman for the management of EWE Tel.
Reinhard Houben, the economic policy spokesman for the FDP parliamentary group, described the Cologne ruling as “the next resounding slap in the face for former Federal Transport Minister Andreas Scheuer” after the toll disaster. The Federal Network Agency also now has a duty to present a serious and court-proof decision.
