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Serbian company MTS risks having some of its benefits confiscated in Kosovo

2023-08-01 19:19:46Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Serbian company MTS risks having some of its benefits confiscated in Kosovo
MTS

If it is established that MTS d.o.o. has illegally purchased at least four cable operators in the Majority Serb-majority areas in Kosovo, it will be fined up to ten percent of the total profit realized anywhere in the world during the last year.

This is what the Kosovo Competition Authority (RFE) has said to Radio Free Europe (REL), which reports to the Assembly about its work.

At the end of November 2022, the authority launched investigations under official duty due to suspicions that MTS d.o.o. company failed to report its transactions, as required by law in Kosovo.
MTS d.o.o. has for its parent company the state telecommunications operator Telekom of Serbia and was established in October 2015 in accordance with the Brussels Agreement between Kosovo and Serbia in the framework of the dialogue on normalization of relations.

If it is established that MTS d.o.o. has illegally purchased at least four cable operators in the Majority Serb-majority areas in Kosovo, it will be fined up to ten percent of the total profit realized anywhere in the world during the last year.

This is what the Kosovo Competition Authority (RFE) has said to Radio Free Europe (REL), which reports to the Assembly about its work.

At the end of November 2022, the authority launched investigations under official duty due to suspicions that MTS d.o.o. company failed to report its transactions, as required by law in Kosovo.
MTS d.o.o. has for its parent company the state telecommunications operator Telekom of Serbia and was established in October 2015 in accordance with the Brussels Agreement between Kosovo and Serbia in the framework of the dialogue on normalization of relations.

Did the MTS eliminate the competition illegally?

The Kosovo Competition Authority has explained to Radio Free Europe that it has received information that MTS d.o.o. bought shares of other companies that provide telecommunications services in Serbian areas in Kosovo, without reporting such a thing.

It claims that this is not in accordance with the Law on Protection of Competition in Kosovo.

"Transactions carried out without notice under the Law on Protection of Competition, are a form of restriction or distortion of competition by companies on the territory of the Republic of Kosovo or abroad, if their actions affect the market of the Republic of Kosovo" it states in response.
As specified, MTS in Kosovo has purchased cable operators north and south of the Ibar River: VGN Net from North Mitrovica, Lika from Zvecan, Ivan Radosavljevic from Leposavic and Herc International in Štrpce.
In late 2021, REL wrote about the acquisition of Herc, one of the largest cable operators south of the Ibrit.
At the time they immediately removed the independent channels from Serbia - N1 and Nova S - which are owned by The United Group, but in the meantime returned.

Did the MTS eliminate the competition illegally?

The Kosovo Competition Authority has explained to Radio Free Europe that it has received information that MTS d.o.o. bought shares of other companies that provide telecommunications services in Serbian areas in Kosovo, without reporting such a thing.

It claims that this is not in accordance with the Law on Protection of Competition in Kosovo.
"Transactions carried out without notice under the Law on Protection of Competition, are a form of restriction or distortion of competition by companies on the territory of the Republic of Kosovo or abroad, if their actions affect the market of the Republic of Kosovo" it states in response.

As specified, MTS in Kosovo has purchased cable operators north and south of the Ibar River: VGN Net from North Mitrovica, Lika from Zvecan, Ivan Radosavljevic from Leposavic and Herc International in Štrpce.
In late 2021, REL wrote about the acquisition of Herc, one of the largest cable operators south of the Ibrit.
At the time they immediately removed the independent channels from Serbia - N1 and Nova S - which are owned by The United Group, but in the meantime returned.

MTS without comment, replies Serbian Telecom

REL contacted the director of MTS Company in Kosovo, Dejan Ognjanovic, to receive a comment on the investigation led by the Competition Protection Authority.

However, Ognjanovic said that Serbia's Telecom had made a statement regarding the case and that it had nothing to add.
On July 30, Telecom of Serbia announced that MTS d.o.o. the mentioned cable operators purchased them in the period from 2019 to 2021, when the old law on protection of competition was in force and under which it was not obliged to report "concentrations related to the purchases in question".

The notice states that MTS d.o.o. has always functioned "conscientiously, transparently and in accordance with the relevant regulations", and hopes that the regulatory bodies in Kosovo work impartially and independently.
"The MTS d.o.o. has submitted its written statements to these investigations on two occasions and sincerely hopes that the Authority (body for the protection of competition) respects our arguments and suspends the investigation," the statement read.

Law on Protection of Competition

The new law on the protection of competition has come into force in June 2022 and provides that participants in a concentration, d.m.th in reducing the number of market participants, in some cases must in advance seek permission from the Competition Authority.

In the law, "concentration" is described as "a lasting change of control of enterprises when independent enterprises or parts of them join or when one or more enterprises gain direct or indirect control of the whole or parts of other enterprises, especially by acquiring shares..."
Until mid-last year, a law was in force, under which permission to participate in concentration was not required, i.e. the purchase of other similar companies.

But, based on the previous law, the Competition Protection Authority had the right to initiate a procedure for reviewing agreements between companies, if it was found that a company dominated.
The address of the MTS d.o.o. registration is also contested.

Radio Free Europe confirmed that MTS d.o.o. is among dozens of companies with disputed addresses. In a list of the Ministry of Industry, Entrepreneurship and Trade of Kosovo MTS in North Mitrovica is registered as a company in "territory of Serbia".

Kjo ministri thekson se të dhëna të tilla nuk mund të tolerohen dhe bëhet e ditur se do t'u hiqet licenca e punës, si në rastin e televizionit Klan Kosova, të cilit në dokumentet e regjistrimit janë shënuar dy qytete në Kosovë - Pejë dhe Gjakovë - por si pjesë të Serbisë.

MTS without comment, replies Serbian Telecom

REL contacted the director of MTS Company in Kosovo, Dejan Ognjanovic, to receive a comment on the investigation led by the Competition Protection Authority.

Megjithatë, Ognjanoviq tha se Telekomi i Serbisë ka bërë një deklaratë lidhur me këtë rast dhe se nuk ka çfarë të shtojë.

Përndryshe, Telekomi i Serbisë deklaroi më 30 korrik se MTS d.o.o. operatorët kabllorë të përmendur i ka blerë në periudhën nga viti 2019 deri në vitin 2021, kur ishte në fuqi ligji i vjetër për mbrojtjen e konkurrencës dhe sipas të cilit ai nuk ishte i detyruar të raportonte “përqendrimet në lidhje me blerjet në fjalë”.

Në njoftim thuhet se MTS d.o.o. ka funksionuar gjithmonë “me ndërgjegje, transparencë dhe në përputhje me rregulloret përkatëse”, dhe shpreson që organet rregullatore në Kosovë të punojnë në mënyrë të paanshme dhe të pavarur.

“MTS d.o.o. ka paraqitur deklaratat e saj me shkrim për këto hetime në dy raste dhe sinqerisht shpreson që Autoriteti (organ për mbrojtjen e konkurrencës) të respektojë argumentet tona dhe të pezullojë hetimin”, shohet.


Në përputhje me standarded JTI

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