The Competition Commission under its newly appointed Chairman is studying the prospect of imposing of penalties on CyTA for its decision not to abide immediately with the Commission’s order to reverse CyTA’s mobile phone charges to pre-April levels.
Although CyTA has announced that it will 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 CyTA needs to reverse its price cuts to their pre-April levels, the Competition Commission has decided to press ahead with the prospect of imposing penalties.
Newly appointed Chairman, George Christofides, who received the contents of the Commission probe against CyTA from outgoing Commission Head Christodoulos Tselepos, said the issue is being closely followed by the Commission.
CyTA 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. However, by law, CyTA is obliged to give its customers one month’s notice, so the new rates will apply from September 9.
CyTA said that if during the 30 days, it turns out that CyTA was justified in cutting 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.
“CyTA will exhaust all measures to annul the interim order of the Competition Commission and the court order and return the rates to the reduced levels existing after April 1,” said CyTA in a statement.
Christofides said the Board of the Competition Commission will immediately convene at the earliest possible date to study the case, not excluding the prospect of the imposition of fines on the Authority for defying its earlier decision.
“We are in consultations with the Legal Services before the imposition of new measures,” said Christofides, who dismissed suggestions that the work of the Commission will be delayed because of change of guard at the top.
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.
