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THE PLENUM OF THE COMPETITION COUNCIL DECISION NO APD- 41 AS OF 13.11.2014

           
27.11.2014   2938 Views    

The Competition Council initiated, on „Moldtelecom”JSC (Joint-stock company) complaint,  the investigation concerning alleged abuse of dominant positions from Î.M. „Orange Moldova” JSC by setting predatory pricing to launch the following promotional actions:

1.     SMS and MMS with 10 moldavian bani to any phone number in the country, every week-end from july, launched on 29/06/2011.

2.     3G Phone Orange F100 with only 699 moldavian lei, plus:

·        1200 MB for Odnoklassniki and Facebook, free for 1 year;

·        Network video calls, free for 1 year;

·        Pre Pay package numbers;

·        40 moldavian lei loan included;

To use 3G + services from Orange is need to register, and this means another bonus for a month:

·        100 minutes free network;

·        100 MB traffic to desired websites, launched on 23/06/2011

3.     Video calls from Orange 3G +:

·        Both for Abonament customers and Pre Pay users, video calls to phone numbers in Moldova are taxed at the same rates as voice calls in that direction;

·        For Pre Pay users who have activated the traffic plan Prietenii,video calls are free in Orange network;

·        For Abonament users, video calls in Orange network are free until december 31, 2011.

4.     With Pantera or Delfin subscriptions from 80 moldavian lei, subscribers receive one of the next offers:

·        10 free hours in the evening and week-end or

·        5 free hours with favorite phone numbers or

·        10 free minutes each day.

With Delfin 50 or Fluture subscriptions, subscribers receive:

·        3 free hours in the evening and week-end or

·        1 free hour with 5 favourite numbers or

·        5 free minutes each day.

This offer was launched on 05/04/2011.

5.     Free evening and week-end:

·        Network calls are free for 1 year, 100 minutes per month, in the evening, starting on 09.00 PM until 07.00 AM and in week-end. This offer is avaible until june 30, 2011.

6.     The subscription Pre Pay Magic Zone provides discounts on calls across the country, offer launched on 06/05/2011.

During the investigation, the relevant product market has been determined as provision market of retail mobile services, and the relevant geographic market- entire territory of Moldova. Both „Moldtelecom” JSC and „Orange Moldova”JSC are competitors in this market. The time period taked under consideration is the year 2011, as claimed promotions were launched in 2011.

Promotion SMS and MMS with 10 moldavian bani  to any phone number in the country, every week-end starting from july was examined by the Competition Council at the request of „Moldcell”JSC. By decision No. APD-8 from 26/09/2013 Competion Council found that „Orange Moldova” JSC did not restrict competition and ceased examination of the case. Thus, in the investigation were examined other 5 promotions.

Competition Council by analyzing aforementioned promotions note the following:

·        according to the calculation of financial results from promotional activities it is found that „Orange Moldova”JSC  recorded profit;

·        analyzing the conditions of promotional activities it was found that all the facilities were granted only in „Orange Moldova” JSC network due to reduced costs for network services, since it is not necessary network interconnection and mobile operators do not pay for call termination on individual mobile network, which enable operators to practice promotions for those services;

·        considering the fact that the market shares of competitors are increased, „Orange Moldova” JSC shows that promotions mentioned above have had the effect of restricting competition on the supply of retail mobile services.

Therefore, in the context of above, there is no infrigement of Art. 6(g) Competition Law nr. 1103 from 30/06/2000.

Thereby, due to decision of Competition Council Plenum it was cease the examination of the case in absence of composition breach.

 


Decizia Plenului Consiliului Concurenţei Nr.APD-41 din 13 noiembrie 2014
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