CyTA fined for SMS and barred from LTV new programme mix

The Commission for the Protection of Competition (CPC) has fined the state-owned telecom CyTA the amount of CYP 22.000 for abuse of its dominant position in denying competitors access to its automated SMS centre.

The CPC’s investigation was made following a complaint made by Golden Telemedia against CyTA. The competition watchdog said that, given CyTA’s dominant position in the telecoms market, the organisation “has a special responsibility” not to pose barriers to competitors and allow them access to its network and infrastructure.
In filing its complaint, Golden Telemedia accused the state provider, which only until recently held a complete market monopoly, of delaying tactics.
Citing “technical difficulties” in providing Golden Telemedia access to its SMS centre, CyTA had suggested an alternative, namely that Golden Telemedia should download messages through Cybee, a portal managed by none other than CyTA.
Under this arrangement, Golden Telemedia would become a middleman and not a direct competitor of CyTA’s.
Moreover, the terms & conditions – and pricing – available to Golden Telemedia through Cybee were deemed to be “unjustifiable,” according to the watchdog.
In another development, the commission upheld an earlier decision, by which LTV was barred from producing for CyTA four entertainment channels on the latter’s miVision digital platform.
CyTA is now likely to take the case to court, which would present an intriguing paradox – a semi-governmental organisation challenging a decision made by another governmental agency, the CPC.
Both in 2005 and 2006, the European Commission was damning on Cyprus, finding that innovation and growth in the telecom industry was being hampered by conditions both favouring and sustaining a monopolistic situation.

The competition commission ruled that there was no problem with LTV supplying packages to miVision, PrimeTel and AthenaSat of its football and basketball and movies programme mix, but ruled that the separate packaging tailor made for CyTA would distort competition.