ArmenTel fined AMD 20 million for unfair competition

YEREVAN, October 25. /ARKA/. Armenia’s State Commission for Protection of Economic Competition imposed today an AMD 20-million fine on ArmenTel CJSC (trading as Beeline) for unfair competition.  

The telecommunication company was fined after Orange Armenia, another mobile telecommunication operator of Armenia, filed a complaint to the antitrust agency saying that ArmenTel used the name of its price offer Simple in the name of own price offer – Simpler than Simple.   

Orange Armenia also complained about commercial that showed the game of billiards, in which a ball with ArmenTel’s Beeline logotype sent two other balls – orange and red (colors of ArmenTel’s two rivals at the country’s mobile telecommunication market) - into holes.  

Orange Armenia says this commercial inflicts damage to its reputation. 

“As you know, these companies operate at telecommunication market, but competition here is quite strong, and Orange’s suit proves it,” said Artak Shaboyan, head of the State Commission for Protection of Economic Competition.

He also said that Orange Armenia was the first company to make this offer and register its name in the Intellectual Property Agency. 

ArmenTel representatives, he said, insist that balls’ colors are typical for billiard balls.   

“After looking carefully through this case and holding hearings and discussion with concerned sides we came to conclusion that ArmenTel company has breached the rules of fair competition,” he said adding that the ArmenTel has repeatedly been warned by the antitrust agency against breaching fare competition rules and fined for wrongdoings. 

ArmenTel CJSC, a subsidiary of Russian VimpelCom (trading as Beeline), provides fixed and mobile telecommunication services and a high-speed access to Internet. 

Orange Armenia, 100% subsidiary of France Telecom, launched its mobile voice and internet services on November 5, 2009 on the whole territory of the Republic of Armenia. 

Now the company provides a full range of voice and data services in around 600 cities and villages of Armenia. Orange has the widest 3G+ network in Armenia which covers more than 95% of the population. -0---