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Summary of the Decision no. APD-14 of 27.04.2017

           
12.05.2017   501 Views    

 On 19.12.2014 the Competition Council Plenum initiated an ex officio investigation on the signs of infringement of art. 5 of the Competition Law no. 183 of 11.07.2012 by the „Moldcell" JS and „Moldtelecom" JS on the prevention, restriction or distortion of competition in the wholesale market for prepaid mobile telephony products and services.

In this case were defined 2 relevant markets:

1.   The wholesale market of prepaid mobile telephony products and services in Moldova;

2.   The retail market of prepaid mobile telephony products and services in Moldova.

During the investigation, when were examinated all the contracts concluded between „Moldtelecom" JS and its distributors/agents as well as between „Moldcell" JS and its distributors/dealers it was found that there are a series of competition problems.

Further, the Competition Council has received the intention of „Moldtelecom" JS and „Moldcell" JS to initiate discussions on accepting commitments. On 02.06.2016 Plenum of the Competition Council decided that it is appropriate to initiate discussions on accepting commitments.

By letter no. 01-05-02-13/11431 of 24.10.2016 „Moldtelecom" JS has sent to Competition Council its proposal of commitments. In this case, „Moldtelecom" JS has committed to sign with each partner an additional act whereby the current distribution contracts will be canceled and resigned other new distribution contracts or authorized agent contracts and to implement a non-discriminatory procedure for selecting direct dealers.

 By letter no. 10011-10/16 of 25.10.2016 „Moldcell" JS has sent to Competition Council its proposal of commitments. In this case, „Moldcell" JS has committed to modify all valid contracts of exclusive distribution (including the provisions of the mandate) of Moldcell products and services, to sign additional agreements on the respective contracts, and to conclude in the future new agency contracts (for the exclusive distribution of Moldcell products/services). Regarding the non-exclusive distribution of Moldcell products, „Moldcell" JS has committed to replace all valid contracts by signing new contracts that will exclude the competition concerns identified by the Competition Council. At the same time, „Moldcell" JS has assumed the obligation to adopt a distribution and selection policy for exclusive agents and non-exclusive partners for the distribution of Moldcell products/services/recharge cards that will include provisions on Moldcell distribution policy, how to select future agents/partners, their identification, pre-selection and selection mode.

On 09.11.2016 the Competition Council initiated the market test by publishing the non-confidential version of the commitments and the summary of the case on the website of the Competition Council www.competition.md.

By Decision no. APD-14 of 27.04.2017 Competition Council Plenum accepted the commitments proposed by „Moldtelecom" JS and „Moldcell" JS and decided to stop the examination of the case.

 

 

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