Prospectus-Final (clean) - Malta Financial Services Authority

Court of Justice annulled these judgments and remanded the cases to the Court of Appeals. Theseproceedings are still pending.In a related matter, on 19 October 2005, two lawsuits were served on Deutsche Telekom; one bytelegate for damages of approximately EUR 86 million, plus interest, and another by telegate'sfounding shareholder, Dr. Klaus Harisch, for damages of approximately EUR 329 million, plus interest.In the latter claim, the claimant subsequently increased the amount claimed to approximately EUR 612million, plus interest. Both plaintiffs claim that they incurred losses, due to the alleged adverse effectthat Deutsche Telekom's alleged inclusion of inadmissible costs in Deutsche Telekom's provision ofcustomer data had on telegate's position in the market, the resulting capital increases that thisrequired, and the weaker development of telegate's share price and the loss of shares of certainshareholders. The action is still pending before the Cologne Regional Court.In 2006, klicktel (currently telegate) filed another lawsuit with the same court and is now claimingpayment of approximately EUR 14 million plus interest and requesting a determination that DeutscheTelekom is obliged to compensate them for all damages arising from 2007 to 2010. The action is stillpending before the Cologne Regional Court.Damages for Lost Profits/Price SqueezeIn December 2005, Arcor filed a lawsuit with the Regional Court in Cologne in the aggregate amountof approximately EUR 41.9 million, plus interest, claiming damages for lost profit with retail analogaccess products as a result of an alleged price squeeze between Deutsche Telekom's wholesaletariffs for access to the local loop and Deutsche Telekom's retail access tariffs between January 1998and September 2003. Arcor bases its claim primarily on the EU Commission's decision of21 May 2003 against Deutsche Telekom for allegedly abusing Deutsche Telekom's dominant positionby charging Deutsche Telekom's competitors and end-users unfair monthly and one-off charges foraccess to Deutsche Telekom's local network. In February 2006, the original damage claim wasincreased to EUR 223 million, plus interest, purportedly based on customer relationships not realisedbetween September 2003 and June 2005 and a new calculation methodology used by the plaintiff,which, in Deutsche Telekom's view, deviates from the European Commission's approach. On 10 April2008, the European Court of First Instance dismissed Deutsche Telekom's lawsuit. DeutscheTelekom's appeal against this ruling was rejected by the European Court of Justice ("ECJ") on 14October 2010. The European Commission's decision, which requires Deutsche Telekom to pay a fineof EUR 12.6 million plus interest, therefore became final and binding. The national court will not bepermitted to issue any ruling that would be contrary to the ECJ's decision in the continued proceedingsfor damages. However, the amount of the loss suffered by competitors was not the subject of the casebrought before the ECJ. The proceedings before the Regional Court in Cologne are still pending.In 2011, Versatel and EWE Tel filed lawsuits against Telekom Deutschland GmbH claiming damagesof around EUR 70 million, plus interest and around EUR 82 million, plus interest respectively.NetCologne has filed a lawsuit claiming damages of around EUR 73 million. MNet has filed a lawsuitclaiming damages of around EUR 27.3 million and HanseNet has filed a lawsuit claiming damages ofaround EUR 126 million, plus interest in each case. In January 2012, HanseNet (now TelefónicaGermany) withdrew the action.Kabel DeutschlandIn April 2012 Kabel Deutschland Vertrieb und Service GmbH ("KDG") has filed a lawsuit againstTelekom Deuschland GmbH ("TDG") to obtain a price reduction for the co-use of cable ducts. Thelawsuit aims at a reduction of the annual fee of currently approximately EUR 100 million by around twothirds and repayment of overpaid amounts of around EUR 273 million (plus interest) as well asadditional EUR 9,6 million for interests TDG received as result of the overpayment. The lawsuit isbased on alleged abusive pricing of the annual fees for the co-use of cable ducts.Proceedings against Decisions of the Federal Network AgencyUnder the German Telecommunications Act, the Federal Network Agency regulates charges allowedfor local loop lines. Under this regulation, Deutsche Telekom is obliged to publish a reference offer foraccess to unbundled local loop and prices require prior regulatory, or ex-ante, approval. With theexception of the approval of one-time charges from 1999, the regulatory approvals required under theGerman Telecommunications Act of Deutsche Telekom's monthly charges for unbundled local loop115