Sibirtelecom Paid Price for Anticompetitive Actions
OREANDA-NEWS. September 30, 2009. The Federal Antimonopoly Service (FAS Russia) fined "Sibir'telecom" OJSC more than 1 million Rubles for abusing dominant position in the market of the services for providing access to subscriber lines (Internet access services using xDSL technology), reported the press-centre of FAS Russia.
On 21st April 2009, having investigated a petition of "Barnaul.ru" Ltd., FAS Russia established that "Sibir'telecom" OJSC overrated the fee for the joint use of subscriber lines and subscriber fee for providers in connecting their subscribers to the Internet, in comparison with the rates and subscriber fees for Internet access through existing subscriber line for the subscribers of "Sibir'telecom" OJSC.
Based on the cost/ profit analysis of "Sibir'telecom" OJSC for providing such services, FAS Russia concluded that the company fixed monopolistically high prices: 2200 Rubles/line (as a lump sum) for connection and 250 Rubles/line (a monthly fee) for providing services.
FAS Russia found that "Sibir'telecom" OJSC violated Part 1 Article 10 of the Federal Law "On Protection of Competition" and issued a determination to eliminate the violations.
"Sibir'telecom" OJSC executed the determination of the antimonopoly authority and reduced the connection rates from 2200 to 200 Rubles and the monthly fee from 250 to 110 Rubles.
"Sibir'telecom" OJSC created discriminatory conditions for the subscribers of alternative providers in comparison with the subscribers who used the Internet access directly from "Sibir'telecom" OJSC.
Under Article 14.31 of the Code on Administrative Violations, FAS Russia imposed administrative charges upon the company and fined it 1,144,605 rubles.
Penalties against "Sibir'telecom" OJSC could have been heavier if the company had failed to execute the FAS Russia's determination.
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