THE COMPETITION watchdog (CPC) has fined state telecoms company CyTA and Greece’s Forthnet AE €2.9mln and €2.3mln respectively for violating competition laws through an agreement to broadcast several Greek pay television channels to the Cypriot market.
The two companies signed an exclusive agreement in 2011 to broadcast, through CyTA’s television arm, Cytavision, NOVACINEMA and NOVASPORTS.
The two companies were found in violation of three articles relating to restricting competition through indirect price fixing, restricting or control of production, availability, technological development and investment, and geographical sharing of markets or supply sources.
The two companies must avoid a repeat of the practice in the future, CPC chief Loukia Christodoulou.
“They are required to cease the violations immediately,” Christodoulou said.
The November 23, 2011 agreement included exclusivity and no competition clauses.
The commission ruled that such an agreement restricts competition since sharing the market entailed a reduction of production and rise in prices “something that leads to improper distribution of resources and worsening of consumer welfare.”