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UK's Ofcom fines British Telecom £42M for contract breach

The U.K.'s Ofcom has fined British Telecom more than £42 million for reducing compensation payments to other telecoms service providers due to delayed installation of high-speed business lines, the British regulator said March 26.

BT will also be fined £300,000 for failing to provide accurate and complete information on the original dispute.

The investigation showed that the company misused the terms of its contracts between January 2013 and December 2014 to reduce the compensation owed to telecoms providers for not delivering Ethernet services on time. The investigation began November 2015, after Vodafone UK alleged that BT misused its contract's terms.

The British regulator said the telco's actions represents a "serious breach of Ofcom rules."

Ofcom investigations director Gaucho Rasmussen said: "The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses. Our message is clear — we will not tolerate this sort of behaviour."