A fine of €66 894 000 on Telefónica and of €12 290 000 on Portugal Telecom were imposed by the European Commission for agreeing not to compete with each other on the Iberian telecommunications markets, in breach of the EU antritrust rules.

The European Commission imposed fines of €66 894 000 on Telefónica and of €12 290 000 on Portugal Telecom - the fines were set on the basis of the Commission's 2006 Guidelines on fines -,  for agreeing not to compete with each other on the Iberian telecommunications markets, in breach of Article 101 of the Treaty on the Functioning of the European Union (TFEU) which prohibits anti-competitive agreements. The official investigation was opened by the Commission in January 2011.

According to the European Commission, in July 2010, in the context of the acquisition by Telefónica of the Brazilian mobile operator Vivo, which was until then jointly owned by both parties, the parties inserted a clause in the contract indicating they would not compete with each other in Spain and Portugal as from the end of September 2010. With this clause, instead of competing with each other for offering clients the most advantageous conditions, as is expected in an open and competitive market, Telefónica and Portugal Telecom deliberately agreed to stay out of each other's home markets.

The parties terminated the non-compete agreement in early February 2011, after the Commission opened antitrust proceedings. The Commission also pointed out that any person or firm affected by anti-competitive behaviour as described in this case may bring the matter before the courts of the Member States and seek damages. The case law of the Court and Council Regulation 1/2003 both confirm that in cases before national courts, a Commission decision is binding proof that the behaviour took place and was illegal.