CyTA ordered to raise mobile prices

1 Aug 2005

Cypriot telecoms operator CyTA has been ordered to raise its prices for mobile telephony services. The ruling, passed yesterday by the country’s Supreme Court, overturns a previous court decision by the Competition Commission, brought after CyTA’s sole competitor Areeba complained that Cytamobile-Vodafone, which controls 96% of the country’s mobile sector, was abusing its dominant position in the market. Areeba had argued that CyTA was guilty of price squeezing by cutting mobile call rates to match the tariffs it was charging. The Competition Commission agreed that CyTA was stifling competition and ordered it to revert its pricing to its pre-April levels, but CyTA ignored the edict and the following day received a court ruling that annulled the interim order. However, this ruling has now been overturned by the Supreme Court which is demanding that CyTA comply with the interim ruling or face the consequences. The incumbent could face a fine of up to GBP5,000 per day if it persists in its actions.