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EU sues Hungary for cable TV curbs protecting Magyar Telekom

European Union regulators sued Hungary for restricting growth and mergers of cable television providers in competition with Magyar Telekom Nyrt, the former state telephone monopoly.

The European Commission, the bloc's executive agency and antitrust enforcer in Brussels, said in a statement it is taking the Hungarian government to the EU's highest court for failing to repeal a law limiting cable TV companies from serving more than a third of the country's population. „The current legislation is preventing further consolidation of the cable TV sector in Hungary,” the commission said today.

„Consolidation would foster investment and the provision of better broadband services,” the agency said, „in competition with Magyar Telekom throughout the whole of the country.” The commission enforces EU laws by filing suit at the European Court of Justice, which can order governments to bring their statutes into line with the region's directives. Countries that ignore such orders can face fines from the Luxembourg-based court. (Bloomberg)