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Cyta found guilty of abusing position

20 Jan 2006

Cyprus’ incumbent telecoms operator Cyta has been found guilty of abusing its dominant market position, but has managed to avoid an additional charge of squeezing telephony prices in a bid to keep competitors at bay. The ruling was handed down by the country’s Competition Commission, which investigated complaints made by private operator Areeba that Cyta was exploiting its dominant position. The telco could be fined up to 10% of its annual turnover, the maximum penalty allowed, although sources told local press that the outcome was extremely unlikely. Cyta can appeal the decision with the Supreme Court. The case follows a CYP50,000 (EUR87,000) fine imposed on Cyta by the Commission earlier this week for denying competitors access to directory listings in violation of the law.

Despite the liberalisation of the telecommunications market, Cyta still accounts for over 90% of Cyprus’ mobile, fixed line and internet customers.

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