Kazakh court upholds ruling as K’cell falls foul of competition regulator

11 Mar 2014

K’cell, TeliaSonera’s subsidiary in Kazakhstan, has confirmed that the Kazakh Court of the first instance has ruled in favour of the Agency for Competition Protection (ACP), in its legal case against the company. The case relates to K’cell’s alleged violation of the anti-monopoly law, with respect to the charges for its ‘Daytime Unlimited’ services under the Activ brand, and the non-interruption of services when a customer’s balance reached 0 under the K’cell brand. The ACP asserted that the company abused its dominant position in the Kazakh market, leading to the violation of customers’ rights. The court supported the fine in the amount of KZT16.05 billion (USD86.95 million) under Article 147 clause 3 of the Code of Administrative Offences of the Republic of Kazakhstan.

For its part, K’cell believes that, in accordance with the recent changes in the Code of Administrative Offences, the fine – if applicable – should be limited to 10% of the income received from the zone of violation, and not 10% of total revenues from voice services as currently applied by the court.

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