Telefónica was yesterday ordered to pay a €152 million antitrust fine after the European Commission found Spain's dominant telecoms group guilty of illegally freezing out rivals from the lucrative broadband market.

It is the largest fine Brussels has ever imposed on a telecoms company, outstripping earlier penalties imposed on Deutsche Telekom and France's Wanadoo for similar abuses by a factor of 10. With the exception of Microsoft, no other company has been punished more severely for abusing a dominant position.

The EU's top anti-trust regulator said that the fine was intended as a warning to other groups and reflected a determination to defend competition in newly-liberalised markets.

Telefónica is to appeal against the ruling. - ( Financial Times Service )