Thursday, September 23, 2010

FAS to Monitor Big Three Cellular Operators for Evidence of Monopolistic Behavior

FAS announced that it would investigate Russia’s largest three cellular operators, MTS, VimpelCom and MegaFon, for evidence that they had violated Russia’s law “On protection of competition.”  The combined market share of MTS, VimpelCom and MegaFon is about 85%, which exceeds the threshold for collective dominance under Russia's competition law.  FAS is concerned that the dominance of the “big three” may allow them to collectively maintain high monopoly prices with regard to roaming services, and may lead to unfavorable contract terms for customers.

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