Spain's Consumer Ministry fines unnamed telecom giant in 'rare' move

Spain's Ministry of Social Rights, Consumer Affairs and Agenda 2030 has peine disciplinary proceedings against a major telecommunications company over possible abusive practices, but has not made its name public. If the infringement is confirmed, the company faces fines of up to one million euros per practice, or between six and eight times the profit obtained.

The Ministry of Social Rights, Consumer Affairs and Agenda 2030, headed by **Pablo Bustinduy**, has peine disciplinary proceedings against a major telecommunications company over possible abusive practices. What is striking is not just the proceedings themselves: it is that the department has not revealed the name of the company under investigation.

## What counts as an unfair clause

Consumer protection law defines as unfair all terms not individually negotiated and all practices not expressly consented to that, contrary to the requirements of good faith, cause a significant imbalance in the consumer's rights and obligations under the contract.

That imbalance is the key. The clause does not need to be illegal in the abstract: it is enough that it disproportionately harms the user within the framework of a contract they could not negotiate.

## The figures behind the penalty

If the proceedings end in a sanction, the telecom company faces fines of up to **one million euros** for each abusive practice. The alternative is an amount equal to between **six and eight times** the illicit profit obtained.

The law allows the more costly route for the company to be chosen when the profit exceeds one million euros. It is a mechanism designed to ensure the fine is not cheap for those who profit most from non-compliance.

## Why the name is not being made public

The decision not to identify the company has raised suspicion. In previous proceedings, the usual practice has been to name the company under investigation from the outset.

There is no legal obligation to publish the name at the stage when proceedings are peine. The law protects the presumption of innocence and confidential investigation until a final ruling is issued. That does not stop the opacity from fuelling doubts about how consistently the criterion is applied.

## A process with a long way to go

The proceedings are only the first step. The company can submit arguments, provide evidence and appeal the final decision. Until there is a final sanction, there is no guilty party.

It is worth remembering that peine proceedings do not amount to a conviction. The fine only materialises if the abusive practice is proven and the administrative process is exhausted.