Investigation over market domination near end for mobile operators

Investigation over market domination near end for mobile operators

Albanian Competition Authority announced today that the investigation over market domination abuse in the mobile telecommunication in Albania is near the end. The last hearing session was held with AMC representatives, and another hearing session will be held in a few days with Vodafone Albania.

Both companies, Vodafone Albania and AMC, with market shares of 49% and 51% respectively, have been accused for non-competitive conduct. The investigators have submitted their report and a decision will be taken within this month by the Authority Council. If the council decides to bring charges for such conduct, then the mobile operators could be fined up to 10 % of their last year’s turnover.

In 2006, AMC revenue reached EUR 151 million, with net profit increasing by 49.9% compared to 2005. Meanwhile, Vodafone Albania has not yet published its last year’s results; however, Tirana newspapers have estimated revenues of up to EUR 150 million.

Tirana analysts are of the opinion that political pressure over the Albanian Competition Authority could save both companies from possible fines.

AMC Albania is owned by the Greek mobile operator Cosmote and enjoys full support from the Greek Government.