COLOGNE (dpa-AFX) - According to a ruling by the Koln Administrative Court, the rules of the game for the multi-billion euro 5G mobile communications auction in 2019 were not in accordance with the law. The court ruled in favor of the mobile network providers Freenet and EWE Tel, who felt that they had been disadvantaged by procedural and balancing errors in the award and auction rules. At the heart of the case 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.

At the auction for the 5G mobile communications standard, four telecommunications groups had purchased frequencies for a total of 6.5 billion euros. They committed to minimum expansion targets, such as providing 98% of households in each federal state with a download speed of at least 100 Mbit per second by the end of 2022. However, the federal government has waived a so-called service provider obligation.

Allegation of a political deal confirmed

Such a regulation or at least strict requirements would have helped smaller mobile network providers who do not have their own network and rent network capacity. Their position would have been strengthened vis-à-vis the large network operators. Two smaller mobile providers, EWE Tel and Freenet, felt disadvantaged and took the matter to court.

The Koln ruling ultimately found that politicians had unlawfully exerted influence on what was actually an independent authority. This confirmed the accusation of a political deal. This provided that the grid operators were ordered to meet tough expansion targets, but were treated leniently when it came to grid leasing.

The legal dispute had previously gone through all instances up to the Federal Administrative Court. The highest administrative judges in Leipzig referred the case back to the administrative court in Koln in October 2010. The judges in Koln have now ruled that the decision of the Presidential Chamber of the Federal Network Agency on November 26, 2018 regarding the allocation and auction rules for the 2019 auction of frequencies in the 2 GHz and 3.6 GHz ranges that are particularly suitable for 5G mobile communications was unlawful.

Impact on mobile customers unclear

It is still unclear how the Koln ruling will affect mobile customers in Germany, partly because the ruling is not yet legally binding. The Administrative Court has not allowed a further appeal. However, the Federal Network Agency may try to obtain permission to appeal to the Federal Administrative Court. "We do not expect any negative effects on the further rapid expansion of mobile networks in Germany," said an authority spokesperson.

Freenet explained that almost six years after the Presidential Chamber's decision, there was finally clarity. "The court has documented that the negotiation requirement only found its way into the Presidential Chamber decision due to unlawful influences." The annulment of the 5G award decision could not undo the years lost to competition. "But now nothing stands in the way of a decision in the interests of consumers. Against the backdrop of the ongoing frequency allocation procedure, we are also counting on the Federal Network Agency to follow the court's request in a timely manner and replace the negotiation requirement, which has been burnt since today at the latest, with effective competition regulation."/chd/DP/nas