FAS found PJSC MTS to have violated antimonopoly legislation

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tanjimajuha20
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FAS found PJSC MTS to have violated antimonopoly legislation

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The Federal Antimonopoly Service (FAS) of Russia has issued an order to Mobile TeleSystems PJSC (MTS) following the consideration of an antimonopoly case. Earlier, the FAS found that MTS violated Federal Law No. 135-FZ "On Protection of Competition". In April and May 2024, MTS increased the cost of cellular services by an average of 8% for more than 30 million subscribers.

The FAS established that the increase was economically unjustified and infringed on the interests of consumers. Now, in addition to transferring income to the budget in armenia whatsapp number databa se the amount of 3 billion rubles, the operator must reduce tariffs for subscribers affected by the increase in the cost of cellular services.

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In April and May 2024, PJSC MTS increased the cost of mobile services by an average of 8% for more than 30 million subscribers. The operator was issued an order to eliminate the violations.

"The FAS Russia has repeatedly fined telecom operators for unjustified tariff increases, but violations are repeated almost every year. The current fines do not encourage them to engage in fair market behavior. Usually, in such cases, telecom operators assess the risks of being held liable for tariff increases as insignificant. For example, when appealing a decision and order of an antimonopoly authority, the period for complying with the order is suspended until the decision of the appellate court. Thus, during this entire period, the telecom operator continues to receive excess profits from tariff increases. Therefore, a fixed fine does not allow for the proper suppression of such illegal actions by operators: it is insignificant in relation to the income from the offense. In this regard, only the collection of illegally obtained income to the budget is a proportionate measure in relation to the actions of operators when raising tariffs. Such a measure will contribute to the effective prevention of such unfair practices among telecom operators," a representative of the FAS Russia press service explained to a ComNews correspondent.

"We are studying the documents received from the FAS. The company will make a decision on further actions, including their possible challenge, based on the results of the assessment," said a representative of the MTS press service.

Leading analyst of Mobile Research Group Eldar Murtazin reminded about the obligation of operators to notify the FAS about tariff increases: "Since March 2022, there is a regulation according to which operators must provide the FAS with an economic justification and calculation of tariff changes at least 14 days in advance. And only after FAS approval can the operator introduce new tariffs. Accordingly, the tariffs that MTS introduced in April-May 2024 were agreed with the FAS. But this is an interesting situation."

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