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RA STATE COMMISSION ON PROTECTION OF ECONOMIC COMPETITION DISMISSES ADMINISTRATIVE COMPLAINT OF ARMENTEL
YEREVAN, MARCH 31, NOYAN TAPAN. At the March 31 sitting, the RA
State Commission on Protection of Economic Competition discussed and
dismissed ArmenTel's administrative complaint about the commission's
decision to fine the company for using discriminatory conditions (abuse
of its dominating position). To recap, ArmenTel launched a campaign,
during which those persons, who were its mobile contract communication
(SIM) subscribers for a year, were given the opportunity to connect
to each other at a per-minute tariff of 2 drams. The same discount
was also offered for connection to fixed-line phones, whereas a sum
several times as much as this one was required for connection to the
same network under the commutation agreement of another operator -
K-Telecom company: 9.94 drams per minute for connection to the Yerevan
network, and 19.93 drams (busy hours) and 14.04 drams (not busy hours)
for connection to the regional networks. The commission had intiated
the proceedings based on ArmeTel's application. In its administrative
complaint, ArmenTel informed the commission that the proceedings
should be suspended since another state body, the RA Public Services
Regulatory Commission, has made a decision on the same issue.
However, the RA State Commission on Protection of Economic
Competition stipulated that the law is definite, and in case of
a violation or distortion of economic competition, the power to
give an opinion is reserved for the Commission on Protection of
Economic Competition. Moreover, the Law on Protection of Economic
Competition does not restrict the commission's powers with respect to
any market. In other words, the competence of economic competition
protection applies to all spheres of economic activities without
exception. At the same time it was noted that these administrative
proceedings have another subject. ArmenTel also indicated in the
administrative compalint that the commission's opinion that the rival
may be forced out of the market as a result of the above mentioned
behavior of ArmenTel is not substantiated. The company presented some
indices to show that the rival has not been forced out of the market,
and since "it was not actually forced out", according to ArmenTel,
the commission's position is not well-founded. However, according
to a press release submitted to NT by the commission, in reality,
based on the necessity to secure equal competitive conditions, the
legislation on economic competition stipulates that the company's
behavior should be considered, and not the results of its behavior,
which was actually done. Moreover, the commission takes a view that
being forced out of a market does not mean to stop operating on
this market, or to "disappear" completely, also when the reasonable
opportunity to attract new subscribers is restricted. In the third
point of the administrative compalint, ArmenTel asked that the fine
be imposed not in the amount of 1% of its revenues from the mobile
communication market but also in the amount of 1% of the overall
revenues received from the calls made from the mobile to the fixed-line
phone network. Yet in this case the law fixes the amounts of fines and
does not allow the commisison to use its own discretion. So, the RA
State Commission on Protection of Economic Competition dismissed the
administrative complaint of ArmenTel on the above mentioned grounds.
From: Emil Lazarian | Ararat NewsPress
YEREVAN, MARCH 31, NOYAN TAPAN. At the March 31 sitting, the RA
State Commission on Protection of Economic Competition discussed and
dismissed ArmenTel's administrative complaint about the commission's
decision to fine the company for using discriminatory conditions (abuse
of its dominating position). To recap, ArmenTel launched a campaign,
during which those persons, who were its mobile contract communication
(SIM) subscribers for a year, were given the opportunity to connect
to each other at a per-minute tariff of 2 drams. The same discount
was also offered for connection to fixed-line phones, whereas a sum
several times as much as this one was required for connection to the
same network under the commutation agreement of another operator -
K-Telecom company: 9.94 drams per minute for connection to the Yerevan
network, and 19.93 drams (busy hours) and 14.04 drams (not busy hours)
for connection to the regional networks. The commission had intiated
the proceedings based on ArmeTel's application. In its administrative
complaint, ArmenTel informed the commission that the proceedings
should be suspended since another state body, the RA Public Services
Regulatory Commission, has made a decision on the same issue.
However, the RA State Commission on Protection of Economic
Competition stipulated that the law is definite, and in case of
a violation or distortion of economic competition, the power to
give an opinion is reserved for the Commission on Protection of
Economic Competition. Moreover, the Law on Protection of Economic
Competition does not restrict the commission's powers with respect to
any market. In other words, the competence of economic competition
protection applies to all spheres of economic activities without
exception. At the same time it was noted that these administrative
proceedings have another subject. ArmenTel also indicated in the
administrative compalint that the commission's opinion that the rival
may be forced out of the market as a result of the above mentioned
behavior of ArmenTel is not substantiated. The company presented some
indices to show that the rival has not been forced out of the market,
and since "it was not actually forced out", according to ArmenTel,
the commission's position is not well-founded. However, according
to a press release submitted to NT by the commission, in reality,
based on the necessity to secure equal competitive conditions, the
legislation on economic competition stipulates that the company's
behavior should be considered, and not the results of its behavior,
which was actually done. Moreover, the commission takes a view that
being forced out of a market does not mean to stop operating on
this market, or to "disappear" completely, also when the reasonable
opportunity to attract new subscribers is restricted. In the third
point of the administrative compalint, ArmenTel asked that the fine
be imposed not in the amount of 1% of its revenues from the mobile
communication market but also in the amount of 1% of the overall
revenues received from the calls made from the mobile to the fixed-line
phone network. Yet in this case the law fixes the amounts of fines and
does not allow the commisison to use its own discretion. So, the RA
State Commission on Protection of Economic Competition dismissed the
administrative complaint of ArmenTel on the above mentioned grounds.
From: Emil Lazarian | Ararat NewsPress