The Commission for the Protection of Competition (CPC) has imposed a CYP 693.000 fine on the Electricity Authority of Cyprus (EAC) for violations and possible infringement of article 6, of the law 207/89.
The investigation against EAC began in February 2004 and resulted in a Statement of Objections being issued against EAC citing the imposition of unfair prices and cross-subsidization on the part of EAC as infringements of the Law for the Protection of Competition.
The legal counselors of EAC submitted the final positions and additional clarifications on their written submissions on the case, and did not contest, in part, the objections of the CPC. Moreover, they provided an acknowledgment of the contribution of EAC to the society and economy of Cyprus as part of the mitigating factors that the Commission should consider in reaching its decision.
CPC Chairman Georgos Christofides said the Commission took many factors into account and showed a lot of restraint when determining the level of the fine. The CPC may if it so decides to impose a fine up to 10% of the total revenue of a company under investigation. Based on about CYP 220 mln annual revenue, the EAC could have possibly faced a fine of CYP 22 mln, but escaped with only a CYP 693.000 fine.
CyTA vs. areeba
A similar gesture is probably what CyTA will be hoping when the CPC decides on the level of the fine to impose on the telecom in the case concerning the complaint filed by Areeba Ltd against Cyprus Telecommunication Authority (CyTA) for the possible infringement of section 6 of Law 207/89, which was concluded by the CPC on December 6.
The investigation against CyTA began in May 2005 and resulted in the Statement of Objections that was issued and served to CyTA regarding the acts and omissions of CyTA, which resulted from the enforcement of the new national mobile rates that came into force on the 1/4/2005. The infringements also, relate to the margin squeeze of the profit between the mobile retail rates that CyTA charges to its customers and the prices for the national roaming that CyTA charges to Areeba .
For the same case the Cyprus Commission for the Protection of Competition issued, on the 5th of July 2005, a decision on interim measures, which CyTA refuses to comply with.
At the above meeting of the CPC, the lawyers of CyTA and of Areeba submitted their final positions and clarifications on their written submissions on the case.
The Commission reserved the delivery of its decision soon.
