EU to challenge new German telecom law

BERLIN, May 18 (UPI) -- The European Union has raised objections to a change in German telecom law that would give Deutsche Telekom a monopoly on broadband connections.

EU telecom commissioner Viviane Reding said she would launch an infringement procedure to block implementation of the law, which was passed by the German Cabinet Wednesday.

Deutsche Welle reported Thursday that Reding said Europe "cannot afford to create new monopolies out of short-term political optimism."

The new measure now before the Bundestag would exempt Telekom's planned $4 billion broadband network from government price regulation and would block competitor access for several years.