Sharp divisions have emerged within the European Commission over a plan to boost competition in the region's telecommunications market by splitting up big companies such as Deutsche Telekom and Spain's Telefónica.

Neelie Kroes, EU competition chief, and Günter Verheugen, the industry commissioner, have attacked a proposed overhaul by fellow commissioner Viviane Reding of laws governing the bloc's €289bn-a-year ($407bn, £201bn) electronic communications sector. They warn that the proposed review could create more bureaucracy and harm investment.