Orange must pay EUR5mln in litigation with GSM dealer Fonomat. Court decision is not yet final

The Bucharest Court has ruled telecom operator Orange Romania should pay approximately EUR 5 million in a litigation with GSM dealer Fonomat, as stated by the Tuca Zbarcea & Asociatii lawfirm, quoted by Hotnews.ro.

This fine represents the sum for ceasing the contract with Fonomat as well as cover the damages that Fonomat registered after Orange did not fulfill its contractual obligations.

However, the decision is not final and Orange can appeal the decision within 15 days since the sentence was passed.

Tuca Zbarcea & Asociatii represented Fonomat in the litigation. Fonomat is owned by Spanish investment fund GED.

In 2009, Fonomat, which at that time had a retail network of 180 stores, was the GSM dealer of operator Orange Romania. However, in 2010 Orange decided against prolonging the contract which left Fonomat without the right to sell Orange postpay offers.

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Later in 2010, Fonomat announced it had signed with Vodafone. At that time, the GSM dealer had little above 160 stores. In March 2011 Fonomat signed a contract with Vodafone for the management of the operator’s network Proton. In early 2012, Vodafone ceased the management contract with Fonomat.

Fonomat came into being when Spanish fund GED Private Equity acquired four companies of GSM retail: Dasimpex, Puls GSM, GSM Land and Plus GSM.

Otilia Haraga