The Agency for Protection of Competition (AZK) in Montenegro has found that telecommunication companies MTEL, One Montenegro, and Crnogorski Telekom engaged in a cartel agreement by simultaneously raising the minimum prepaid service charge to five euros starting April 1. This is considered a violation of competition laws, and AZK has banned the continuation of this practice.
As a result, the companies face potential fines ranging from 1% to 10% of their revenue from the previous year, which totaled 270 million euros. If the Court of Misdemeanors upholds AZK’s decision, the fines could range between 2.7 million and 27 million euros.
AZK launched the investigation after the Agency for Electronic Communications (EKIP) raised concerns about the price hike, noting that it reduced market competition. AZK Director Nebojša Jovović emphasized that the companies must adjust their practices and that this ruling could benefit consumers by encouraging more competitive pricing.
While the companies involved deny any wrongdoing and plan to appeal, they argue that the price adjustments were based on business strategies, not coordinated actions. They also question the validity of the AZK’s evidence and procedures. MTEL and Crnogorski Telekom have both stated they will use legal avenues to challenge the ruling.
The case is seen as significant in the fight against anti-competitive behavior in Montenegro, with AZK’s Chairman Dragan Damjanović stressing the importance of protecting consumer interests.
