The Cyprus Commission for the Protection of Competition (CPC), today, communicated to the involved parties its unanimous decision in relation to the fine imposed on CYTA for the infringement of section 6(1) of Law 207(I)/89 for the Protection of Competition, concerning the abusive conduct of CYTA, as an undertaking, holding a dominant position in the mobile telephony market.
The CPC, in its unanimous decision imposed on CYTA a fine of CYP 2.200.000 (two million two hundred thousand pounds) .
In determining the amount of the fine, the CPC, inter alia, took into consideration the following:
- The plea for mitigation by CYTA ‘s lawyer after CYTA was found infringing the Law for the protection Competition
- The powers of the CPC, according to section 22 subsection 3 of the Law for infringements of articles 4 and/or 6 the Law. The Commission, within its jurisdiction and pursuant to the provisions of the said section 22(3)(c) of the Law, has the power to impose a fine up to ten per cent of the income of undertaking, during the year in which the infringement took place or the one immediately preceding the year of the infringement.
- The general framework, in which the infringement of the abusive conduct took place, the conditions of the market, the duration and the gravity of the infringement, the particular role of the involved undertaking in the infringement, as well as, its economic and technological capability to distort competition.
- The fact that CY.T.A. is the only public organisation that provides telecommunications services in Cyprus and pursuant to the Regulation of Electronic Communications and Postal Services Law 19(I)/2002, has the obligation to provide access and interconnection services to alternative providers.
- The significance of mobile telephony market in the telecommunications sector and the effects of CYTA ’s decisions in the relevant market.
- The lack of willingness on behalf of CYTA to respond immediately to the investigation carried out by the Service of the CPC, having as a consequence the delay in the collection of all the necessary information requested by the Service.
- CYTA ’s role as a provider of services of general public interest for many years
- CYTA ’s turnover for the year 2004.
In the mitigation of the fine, CYTA ’s refusal to comply, even up to today, with the Commission’s decision, dated 5/7/2005, in relation to the interim measures that CYTA was ordered to enforce, was also taken into consideration
Additionally, the CPC decided to observe CYTA ’s behaviour in the mobile telephony market, in relation to the provisions of the competition legislation.