News

13 February 2023

Ombudsman Diana Kovacheva referred the Chairperson of the Commission for Consumer Protection (CCP) Julia Nenkova and requested a competency review to determine whether competition is being distorted in the market for electronic communications services under the Competition Protection Act.  

The reason for this is the simultaneous indexation of the prices of monthly subscription plans by 15.3% for all three operators, namely Vivacom Bulgaria EAD, Yettel Bulgaria EAD and AA1 Bulgaria EAD, with the average annual consumer price index for 2022 published by the National Statistical Institute.

It is recalled that the Ombudsman has already addressed Acting Prime Minister, Acting Deputy Prime Minister and Minister of Transport and Communications, the acting Minister of Economy and Industry, the Chairman of the Communications Regulation Commission, the Chairperson of the Commission for Consumer Protection, has stated her position before the Economic Committee of the 48^th National Assembly and the Ad Hoc Anti-Monopoly Committee, and requested mobile operators to reconsider their decision.

Prof. Kovacheva's argument is that the state provides financial compensation to businesses and in return they should be required to conduct a relevant social and economic policy.

For example, mobile operators, throughout last year, as well as this year received state aid in the form of compensation for electricity prices.

Furthermore, on 23 January, the public consultation on the draft Council of Ministers’ Decree amending and supplementing the Tariff for the fees collected by the Communications Regulation Commission under the Electronic Communications Act ended. A reduction of their charges under the Tariff by over 40% on average is proposed, and part of the reasons for this are: to encourage investments, stimulate innovation, provide conditions for the introduction of a new generation of mobile networks (5G), etc. These are the same reasons that mobile operators put forward for indexing the prices of their services.

The ombudsman is categorical that during crises and high inflation, it is necessary to provide support and protection to Bulgarian citizens, by taking concrete, urgent measures in order not to increase the prices of mobile services.

 “I want to emphasize that the indexation of the prices of mobile services is provided as a possibility, i.e. it is not necessarily implemented by mobile operators. However, without concrete and clear arguments on their side, this is about to become a fact. It is the check conducted in regard to the uniform decision to apply indexation raises doubts about a concerted practice between Vivacom, Yettel and A1”, writes Prof. Kovacheva.

She made it clear that the simultaneous increase of services prices disrupts competition on the market for electronic communication services and restricts the right of customers to choose to terminate their contract without incurring a penalty, and they cannot renegotiate their tariff plan at a lower price, plus being deprived of the right to choose a mobile operator that does not index its prices at that time.