FAS RECOGNIZED MTS AS VIOLATING ANTIMONOPOLY LEGISLATION

The telecom operator unreasonably increased the cost of services for subscribers

Earlier, the authority initiated an antimonopoly case against MTS PJSC*.

In January 2022, the company increased the cost of cellular services for more than 28 million subscribers by an average of 9.5%, justifying it by increasing costs. At the same time, the operator did not provide sufficient evidence of expenditure growth to justify tariffs increase to FAS Ruussia.

In August 2022, MTS repeatedly increased the cost for part of the tariff plans by an average of 8.4%. The operator raised the remaining tariffs again in September and October 2022 by an average of 9.7%. Thus, the total increase in tariffs for 28 million subscribers in 2022 amounted to more than 20% at the level of the consumer price index as of the end of August 10.5%.

FAS Russia concluded that the increase in tariffs in the absence of technological, economic and other justification violates the interests of consumers.

Today, the Commission of FAS Russia found the operator guilty of setting and maintaining a monopolistically high price for its services. The authority issued an order to MTS on the need to reduce tariffs, within which there were increases, to an economically reasonable level.

The amount of the fine for the company will be determined during the administrative investigation**.

* On the grounds of violation of Paragraph 1 of Part 1 of Article 10 of the Law on Protection of Competition

** In accordance with Part 1 of Article 14.31 of the Code of Administrative Offences of the Russian Federation