The Federal Antimonopoly Service (FAS) of Russia is examining the reasons behind a surge in certain MTS tariffs. The regulator has identified multiple tariff categories where subscribers are facing noticeable price increases and has indicated that it is actively investigating these changes to determine whether they align with fair competition rules. In this context, FAS has advised that it will pursue a formal inquiry into the pricing steps taken by MTS and will share findings with consumers once a complete review is in place. The agency also noted that discounts and optional services will continue to be offered, ensuring that customers still have access to value through promotions while authorities assess the overall pricing structure. The FAS emphasized that if any violations of antitrust laws are detected, the regulator will take appropriate action to restore competitive conditions in the market, protect consumers, and maintain orderly market dynamics. The focus remains on understanding whether the tariff changes were justified by service quality, market conditions, or other legitimate factors, versus being used to reduce competitive pressure or extract higher margins.
In a related development from July 2023, MTS faced a legal setback when a court did not overturn the FAS decision regarding antitrust violations. The Moscow Arbitration Court declined to nullify the regulator’s assessment that MTS raised the price of certain services by more than 20 percent in 2022, while the broader inflation rate stood at about 10.5 percent. This ruling underscored the challenge for carriers in balancing price adjustments with regulatory expectations and macroeconomic conditions, and it reinforced the importance of transparent pricing practices that align with competitive norms.
As part of ongoing oversight, FAS began September with an intensified monitoring program targeting mobile operators suspected of breaching antitrust legislation, according to the ministry’s assessment. The regulator has been attentive to consumer reports alleging that some operators started charging for distributing mobile internet via devices beyond standard service allocations. When verified, such conduct would prompt a corrective period for the operator—typically up to one month—to rectify violations. Failure to remedy could trigger penalties, including substantial fines that stand to reach up to ₽890,000 for non-compliance. This approach reflects FAS’s commitment to promptly address anti-competitive behavior and protect the rights of subscribers across the market.
Earlier actions by FAS included initiating a review of an auction process where the price of a lot surged dramatically, rising by a factor of 1,000 in a relatively short span. This scrutiny demonstrates the regulator’s broader mandate to ensure that bidding processes remain fair, transparent, and free from distortions that could harm consumers or stifle competition. Such enforcement signals are aimed at deterring practices that might artificially inflate prices or create barriers to entry for other operators, thereby preserving a healthy, competitive telecommunications landscape.