The Federal Antimonopoly Service ordered MTS to reduce tariffs

Based on the results of the investigation in the framework of the antimonopoly case against MTS PJSC, the Federal Antimonopoly Service (FAS) of Russia revealed an unreasonable increase in tariffs for the company’s subscribers.

The antimonopoly case against MTS was opened on the grounds of violation of paragraph 1 of part 1 of Article 10 of the Law on Protection of Competition.

At the beginning of 2022, MTS increased the cost of cellular services by an average of 9.5%, justifying this with an increase in its costs. The increase affected more than 28 million subscribers. In August, the company again increased the cost of some tariffs – by an average of 8.4%. In September and October, the cost of other tariffs increased by an average of 9.7%, the FAS reported.

“Thus, the overall increase in tariffs for 28 million subscribers in 2022 amounted to more than 20%, while the consumer price index as of the end of August was 10.5%,” the message says.

Meanwhile, the reference to the increase in the company’s costs turned out to be unreliable – MTS was unable to provide documents confirming the increase in its costs in an amount sufficient to justify such a sharp increase in tariffs.

As a result, the FAS Russia came to the conclusion that the company’s actions violate the interests of consumers. MTS issued an order on the need to reduce tariffs to an economically justified level.

Also, a fine will be imposed on the company, the amount of which will be determined during the administrative investigation in accordance with Part 1 of Art. 14.31 Administrative Code of the Russian Federation.

Alena Bodrienko.

Photo by Sergey Kiselyov / Moskva Agency