CyTA will abide with hike order

The Board of Directors of CyTA decided during its Monday session to abide by a Nicosia Court decision, ordering it to implement to the full the contents of an interim order issued by the Competition Commission according to which it needs to reverse its price cuts on mobile telephony rates and bring it back to their pre-April levels. The court filing was made by areeba.

CyTA Chairman Stavros Kremmos said the Authority is of the opinion that it has not violated its dominant position in the market by lowering mobile phone call fees.

Irrespective of the Authority’s opinion, CyTA has decided to abide by the decision and will maintain for 30 days its fees. He added that if after 30 days, it turns out that CyTA was justified to cut its rates, or if the court decides to rule in its favour, then it will refund the excess money to its subscribers that it is now obliged to charge.

In response to a complaint lodged by areeba, accusing CyTA of abusing its dominant market position, the Competition Commission ordered CyTA to bring mobile rates back up to pre-April levels at 6 cents a minute for mobile to mobile and 5 cents a minute for mobile to land line.

CyTA questioned the validity of the Commission’s authority to impose an interim order and won. The Supreme Court then overturned the ruling, reconfirming the right of the competition authority to make the order. But CyTA announced on two separate occasions that it had no intention of increasing its rates, risking a potential CYP 5,000 daily fine from the Competition Commission or a steep fine based on its daily turnover.

In the meantime, areeba secured an official court order demanding that CyTA return to previous higher rates until the Commission finishes its investigation of areeba’s charge.

So, for the first time, CyTA will be in violation of a court order if it continues to resist efforts to raise its prices with its directors now facing hefty fines if they do not abide with the decision, at least until August 12 when they will be able to argue their case.