Serbia’s Commission for the Protection of Competition (Komisija za Zastitu Konkurencije, KZK) has launched an investigation into Serbia Broadband (SBB) to establish whether the company abused its market position. The watchdog had granted approval for SBB’s acquisition of rival ISP IKOM in March 2017 on the condition that the firm provide reports to the KZK to explain any planned changes to retail prices. In January 2018, however, SBB increased the monthly maintenance fee for its cable services to RSD1,395 (USD14.6). According to the KZK, ‘SBB failed to provide sufficient evidence on the reasonableness of costs pertaining to monthly service fee for maintenance of cable-distribution system and provision of cable TV in the amount of RSD1,395.’ As such, the regulator will assess whether the price of the service has been set at an unfairly high amount. As previously reported by TeleGeography’s CommsUpdate, SBB could face a penalty of up to 10% of its annual income if the KZK finds the price hike unjustified.
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