The Commission for the Protection of Competition (CPC), in the light of the investigation of the complaint submitted by Areeba Ltd on 18.4.2005 against the Cyprus Telecommunications Authority (CYTA), which was recently completed by the Service and submitted to the CPC, decided that there is a prima facie infringement of section 6 of the Protection of Competition Law 207/89 on behalf of CYTA.
As a result of the above prima facie decision, the Commission for the Protection of Competition issued a Statement of Objections against CYTA, which includes the infringements in relation to Competition Legislation and which was served to the involved parties.
The alleged infringements relate to the provision of sections 6(1),(2) and 6(1),(2)(a) of the Protection of Competition Law 207/89, as amended and specifically, in relation to the acts and conducts of CYTA, which resulted to the enforcement of new national mobile rates. The infringements also, relate to the margin squeeze of the profit between the mobile retail rates that CYTA charges to its customers and the prices for the national roaming that CYTA charges to Areeba Ltd, which is considered insufficient to allow its competitor Areeba Ltd to obtain a normal profit.
On the basis of the existing procedures of the Cyprus Competition Commission and with the service of the Statement of Objections, the CPC called CYTA to appear before the Commission to present its defence against the Objections and the prima facie findings raised by the CPC.
For the same complaint the CPC issued a Decision/Order against CYTA, dated 5.7.2005, which CYTA still refuses to comply with, and for which the CPC has sent a letter to the Attorney General of the Republic of Cyprus for the possible commitment on behalf of CYTA of a criminal offence on the basis of the provisions of the Criminal Code.
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