ArmenTel fined for anti-trust violations

Posted on Thursday 31 July 2008

Armenian fixed-line incumbent ArmenTel was fined AMD 300 million (USD 1 million) by state anti-trust regulators for trying to put rival ISPs out of business, specifically referring to the telco’s recent launch of a high speed broadband Internet service offering end users Internet access at a much lower cost, a service with which no other company could compete.

ArmenTel’s rivals claim the incumbent is barring them access to its facilities to provide a similar service and last month submitted a complaint to the State Commission for the Protection of Economic Competition (SCPEC). The commission upheld their complaint and gave ArmenTel 15 days to rectify the situation, but in the wake of its non-compliance, has fined the operator for abusing its dominant position in order to gain unfair advantage over competitors.

ArmenTel has denied any wrongdoing and is expected to launch an appeal.

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