Conduit, the Irish operator of the 11850 directory assistance number, won damages of €670,000 and legal costs from Telefónica after a Madrid court ruled that the Spanish phone company breached competition law.

The Fifth Commercial Court of Madrid ordered Telefónica to pay the damages after finding that the Spanish phone company provided Conduit's directory assistance service with defective and incomplete subscriber data, including telephone numbers. It was the first time ever that a Spanish court granted damages for a breach of telecommunication market regulations, Conduit said in a statement.

Conduit entered Spain in 2003 and began offering an "118" service after the directory enquiries market was opened up.

The Spanish telecommunications regulator, the Comision del Mercado de las Telecomunicaciones (CMT), declared later in 2003 that Telefónica had breached its competition obligations to give accurate subscriber information to Conduit.

The Irish company, which also operates call centres for companies in Austria, Switzerland and Wales, said it incurred costs of €670,000, the amount of the damages it won, because it had to source subscriber data itself.

The Madrid court ruled that Telefónica's action led to a competitive disadvantage for a new entrant to the directory assistance market.

Conduit sold its Spanish business in July to German firm Telegate for an undisclosed sum.

"We hope this acts as a signal to other major operators in the sector to make sure their dominant position is not abused," said Liam Young, Conduit's chief executive.

Conduit employs about 1,400 people in five countries, including more than 500 in Ireland.

In the UK, Conduit runs the "118 888" directory assistance number, as well as a customised directory assistance service for Orange's business in the UK.