European Union antitrust regulators have started a probe into Spanish telecom giant Telefonica, an Associated Press report said.
The report said regulators claimed that Telefonica "appears to have abused a dominant position in Spain's market for broadband Internet access."
Telefonica was also asked to reply within two months to a "statement of objections" outlining claims that Telefonica was squeezing margins from new entrants that needed access to the network structure, the report said.
Regulators also said the "margin squeeze occurs because there is insufficient spread between Telefonica's prices for wholesale access and its tariffs for retail broadband access to end users."
Telefonica declined to comment, the report said.