Court rules against Kcell in Kazakhstan

Business Materials 11 March 2014 11:06 (UTC +04:00)

Baku, Azerbaijan, March 11

By Elena Kosolapova - Trend:

The court of the first instance ruled in favor of the Kazakh Agency for Competition Protection in the legal case against Kcell company, the company reported on March 10.

The case related to alleged violation by Kcell of the anti-monopoly law with respect to the charges for the Daytime Unlimited services under the Activ brand, and non-interruption of services when customers' balance reaches zero under the Kcell brand.

The Agency for Competition Protection claimed that the company abused its dominant position in the Kazakhstan's market, leading to the violation of customers' rights. The court supported the fine in the amount of 16.054 billion tenge (182.08 tenge = $1) under the Code of Administrative Offenses. The decision was announced on March 7, 2014 and has not entered into force yet.

"The company strongly believes that in accordance with the recent changes in the Code of Administrative Offenses, the fine, if applicable, should be limited to 10 percent of the income received from the zone of violation and not 10 percent of total revenues from voice services as currently applied by the court," Kcell said.

Kcell intends to appeal the decision in due time and will defend its position as it does not agree with allegations.

Edited by CN