FAS INITIATED CASE AGAINST THE MEGAFON TELECOM OPERATOR

The company continues to profit from the unjustified price increase

In 2023, Megafon PJSC increased tariffs for communication services for more than 8.2 million subscribers by an average of 10.24 %, justifying this increase with an increase in costs.

It should be reminded that in December 2022, the authority began an investigation of the increase in cellular tariffs by a number of mobile operators*. According to the results of the analysis conducted by the authority, the growth of tariffs of Tele2 and Beeline operators was recognized as justified – they provided FAS Russia with justifications confirming the increase in network costs.

At the same time, the data of the financial statements of Megafon PJSC indicate a significant reduction in the company's expenses and an increase in net profit.

In this regard, FAS Russia came to the conclusion that Megafon PJSC has no grounds for raising tariffs. The actions of the company may lead to infringement of the interests of consumers.

As a result, FAS Russia initiated an antimonopoly case against Megafon PJSC**. In case of finding fault, the telecom operator faces a fine in accordance with the Administrative Code of the Russian Federation***.

In December 2022, the authority has already recognized Megafon as violating antimonopoly legislation and issued an ruling to reduce tariffs. To date, the ruling of the authority is unfulfilled and is being appealed by the company in court. Thus, the telecom operator continues to benefit from the unjustified increase.

* Methodological recommendations for the phased indexation of telecom operators' tariffs, taking into account the current level of inflation, were valid until 31.12.2022.

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

*** Part 1 of Article 14.31 of the Administrative Code of the Russian Federation