Telecom could be fined up to $10 million after being found guilty of anti-competitive behaviour in the high-speed data transmission market.
The High Court in Auckland has ruled Telecom abused its substantial market power to prevent and deter competition between 2001 and 2004.
The court found Telecom charged its competitors disproportionally high prices for wholesale access to its network.
The case was brought by the Commerce Commission, which says over the period in question, the data transfer market was worth an estimated 120 million dollars a year.
Telecom says it is disappointed with the ruling. It has 20 working days to appeal against it. The court is yet to set a penalty.
[audio:http://www.radionz.co.nz/audio/national/mnr/2009/10/15/telecom_faces_$10_million_fine_for_broadband_policies]Listen to more on Morning Report