The agency established the existence of a cartel agreement between the companies "One", "M-tel", and "Crnogorski Telekom"

The threatened amount of the fine is from one to ten percent of the company's annual revenue from 2023, which cumulatively amounted to 270 million euros, which is a potential fine of 2,7 million to 27 million euros.

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From the press conference, Photo: Mirko Kotlaš
From the press conference, Photo: Mirko Kotlaš
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.
Ažurirano: 19.11.2024. 11:41h

The Agency for the Protection of Competition (AZZK) has established the existence of a cartel agreement between the companies "One", "M-tel", and "Crnogorski Telekom", in the increase of the minimum prepaid top-up to five euros, which began with all three operators on April 1. this year.

This was said at the press conference by the director of the AZZK, Nebojša Jovović. He emphasized that the AZZK prohibited the further implementation of this prohibited agreement, but also that the operators have the right to initiate a lawsuit before the Administrative Court against this decision.

Jovović pointed out that the threatened amount of the fine is from one to ten percent of the company's annual income from last year, which cumulatively amounted to 270 million euros, which is a potential fine of 2,7 million to 27 million euros.

"It was established that the agreement between the companies "Crnogorski Telekom", "One" and "M-tel", which directly determined the minimum prices of prepaid top-up, is an agreement that had the aim or effect of preventing, limiting or collapsing competition in the sense of Article 8 paragraph 1 point 1 of the Law on the Protection of Competition and that it is prohibited and null and void. The CAA has imposed behavioral measures in relation to all three operators," Jovović pointed out.

Jovović emphasized that the AZZK initiates misdemeanor proceedings before the Court for Misdemeanors because they do not have the possibility of direct punishment. They pointed out that the procedure is in the hands of the courts, and that they determine the amount of the penalty. Jovović repeated that these three operators have a 100 percent share in the domestic market.

He pointed out that companies have to operate completely independently, that the prices of services cannot be identical, they have to compete, and in this way they have made market competition meaningless.

"We have banned this agreement and it is null and void and we have ordered behavioral measures against the operators. Considering that they have the right to appeal, the finality of the decision of the Administrative Court will be awaited. They may no longer apply this agreement, and my opinion is that they have made no sense of the prepaid service and that it turned into postpaid, so we forbade them from doing so. I hope that in the coming period we will benefit consumers in the form of lower prices for prepaid services," said Jovović.

He emphasized that he believes that they have proven that the operators behaved in this way. Jovović emphasized that the procedures are complex, that the penalties are high.

The President of the AZZK Council, Dragan Damjanović, stated that they expect a new legal solution soon, according to which the Council will impose the fines, so there will be no waiting for the court.

At the beginning of April, AZZK launched an investigation against three mobile operators "Crnogorski Telekom", "One" and "M-tel" following a report by the Agency for Electronic Communications and Postal Services (EKIP). That initiative referred to the examination of the violation of competition when increasing the amount of the minimum prepaid top-up at all three operators with the same amount, identical term for top-up of the user's account, and with the notification that the implementation of the changes at all three operators starts on April 1 of this year.

Željezara and the Municipality of Tivat are still in court

Asked about the status of the Nikšić Ironworks, Damjanović emphasized that the case is before the Administrative Court, after the AZZK determined that Elektroprivreda violated the Law on Control of State Aid by concluding a contract with the Turkish Toščelik.

"The decision of AZZK is enforceable and final pending the decision of the courts, further allocation of state aid has been stopped and the aid must be returned with legal interest," Damjanović said.

Damjanović also stated that the Municipality of Tivat also initiated proceedings before the Administrative Court, due to the decision of the AZZK from mid-October, which determined after almost five years that the debt forgiveness for utilities in the amount of EUR 5,6 million to the company Adriatic Marinas (AM) from August 2018, which was given to her by the Municipality of Tivat under pressure from the Government, is not state aid. Then it was determined that there was no room for further investigation as to whether in that case there was talk of legally compliant assistance.

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