Appeal Court Confirmed: YuTK OJSC Used Unlawful Price Plan
OREANDA-NEWS. September 30, 2010. The 15th Arbitration Appeal Court upheld the decision and determination of the Rostov Office of the Federal Antimonopoly Service (OFAS Russia) regarding “Yuzhnaya Telecommunications Company” OJSC (“YuTK” OJSC), reported the press-centre of FAS Russia.
On 26th January 2010, Rostov OFAS Russia found that “YuTK” OJSC violated Part 1 Article 10 of the Federal Law “On Protection of Competition”. Without any economic reasons, the company set different subscriber rates for using the services of providing Internet access as part of “UnlimBOOM” price plan depending on subscribers’ location in different groups of settlements in the Rostov region.
Based on its decision, Rostov OFAS Russia issued a determination to “YuTK” OJSC to set a single subscriber rate for unlimited Internet access under the “UnlimBOOM” price plan in the Rostov region, with price differentiation depending of the traffic speed.
“Rostov OFAS Russia received numerous petitions from residents of different localities who complained that the Rostov branch of “YuTK” OJSC requested a subscription fee higher that in large cities within the region or townships close to Rostov. Experts of Rostov OFAS Russia were able to prove to the Courts of two instances that fixing different subscriber’s rate depending on a subscriber location was unlawful”, commented Deputy Head of Rostov OFAS Russia Yevgeny Molchanov.
For abusing market dominance Rostov OFAS Russia made “YuTK” OJSC administratively liable under Article 14.31 of the Code of the Russian Federation on Administrative Violations and fined the company RUB 297,310.90. “YuTK” OJSC is also challenging the determination of Rostov OFAS Russia about administrative fine upon the company at a court of law.
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