Sector Report of the Monopolies Commission pursuant to § 195 (2) and (3) of the Telecommunications Act, December 10, 2025
The German Monopolies Commission warns against new monopolies in telecommunications. ‘We are currently in a critical transition phase from copper to fibre technology, especially in Germany. There is a danger that the former state monopolists will become dominant again,’ warned Tomaso Duso, Chairman of the Monopolies Commission. The independent committee, which advises the federal government, has presented its 14th sector report on telecommunications. ‘If the upcoming Digital Networks Act leads to premature deregulation, competition will be severely harmed,’ said Duso.
With the Digital Networks Act, the European Commission plans to harmonise the regulation of telecommunications companies and thus to strengthen the European single market. The Monopolies Commission recommends that companies with market power should continue to be more tightly regulated, at least until effective competition is guaranteed. Overall, the advisory body generally welcomes the planned Digital Networks Act, which will provide important impetus for the completion of the European single market.
Fibre Networks: Ensuring Effective Competition
A key concern of the Monopolies Commission is to ensure competition in the deployment of fibre networks. It recommends prioritising infrastructure-based competition. Where economically viable, two or more network operators should deploy their own fibre networks. This will ensure competition in the long term – to the benefit of consumers. When several providers have to use a single network, smaller operators may be at a disadvantage compared to the network owner. Therefore, the Federal Network Agency should examine how stronger oversight can ensure open access to networks, set binding standards, and safeguard sustainable competition. The Monopolies Commission recommends a minimum standard for residential connections: ‘Every apartment should be connected with 4 fibers of a fiber optic cable. This allows access for different providers and makes it easier for consumers to switch providers,’ explains Tomaso Duso. These recommendations come at a crucial time, as there are currently no clear rules for in-house networks. The aim is to strike a balance between deployment speed and competition in order to achieve the European gigabit targets.
Copper-Fibre Migration: Federal Network Agency Must Act More Decisively
The Monopolies Commission has identified obstacles to fibre redeployment in the transition from copper to fibre networks. Without clear guidelines from the Federal Network Agency on the copper switch-off, Deutsche Telekom could have strong incentives to expand fibre first where alternative providers are already active. This would squeeze out competitors. ‘The future market structure in fixed-line networks will be largely shaped by the migration from copper to fibre,’ says Duso. Therefore, the Federal Network Agency should evolve from its current moderating role to a more proactive stance. The Digital Net-works Act should further strengthen the role of the federal authority.
Internet interconnection: No competition concerns
The Monopolies Commission currently sees no competition concerns regarding data exchanges between large telecommunications companies and large content and service providers such as Alphabet, Amazon, Apple, Meta, Microsoft and Netflix. This debate stems from disputes over whether the latter should make additional payments to large telecommunications companies such as Deutsche Telekom for terminating large volumes of data. Recently, calls have grown for a national or European dispute resolution body. The Monopolies Commission rejects this. ‘Both sides need each other and negotiate on an equal footing. We see no reason to intervene in the market through a dispute resolution body,’ explains Duso. Additional payments can only be justified if they result from commercial negotiations and do not involve any abuse of market power.
The following documents are now available for download:
Sector Report (in German language only)