MTS DOO, a subsidiary of Telekom Srbija, acquired four operators in Kosovo during the period when an Act was in effect under which MTS DOO operated properly and was not obligated to report these acquisitions, Telekom Srbija reacted today after the Competition Authority of Pristina launched an investigation against this company’s subsidiary in Kosovo.
An investigation against MTS DOO was launched in the fall of last year due to suspicions that it was acquiring other regional companies, at least four in Kosovo in areas with a Serb-majority population, according to the Competition Authority, the company did not submit data on transactions to the competent authority, as foreseen by the law.
„We launched an investigation against the MTS company for failing to notify the Competition Authority as provided by law. The company did not submit data to the competent authority about the transactions by which it acquired several companies in different places in Kosovo. Due to these acquisitions without presenting the changes to the authority, we opened an investigation. We are now determining the facts and following the legal procedure,“ the acting Director General of the Competition Authority, Selajdin Beqa, confirmed yesterday.
Beqa also confirmed that the company will be invited to a hearing, where it will be confronted with the findings of the investigation.
However, Telekom Srbija and its subsidiary in Kosovo – MTS DOO, claim otherwise.
In a statement, Telekom Srbija said that it wishes to inform the public and its customers about this situation, while “expressing confidence in the unbiased and independent work of the regulatory bodies, based on EU law and best European practices, particularly emphasizing the rule of law.”
They reminded that MTS DOO has been operating in the territory of Kosovo since 2016, as a result of the Brussels Agreement reached between Belgrade and Pristina.
Furthermore, they claim that the company has always conducted business “conscientiously, transparently, and in compliance with relevant regulations”.
Addressing the acquisition of four operators, the company said between 2019 and 2021. “. During this period, Competition Act No. 03/L-229 was in effect, under which MTS DOO operated properly and was not obligated to report these acquisitions,” they argued.
“The Authority initiated the investigation against MTS DOO based on the new Competition Act, which came into force in June 2022 and was not in effect at the time the acquisitions were carried out,” the company said.
They added that MTS DOO has submitted written responses on two occasions and sincerely hopes that the Authority will consider our arguments and cease the unwarranted investigation.
“We trust in the impartiality and fairness of the Pristina regulatory bodies, based on EU law and best European practices, but most importantly on the principle of the rule of law.”
The company added that there seems to be a potential risk of violating a fundamental legal principle due to such a move by the Competition Authority.
“Namely, the prohibition of retroactive law (retrospective effect), which is in line with basic human rights established at an international and European level.”
Local media reported back in 2020 and 2021 that MTS d.o.o. is acquiring cable operators in Serb areas in Kosovo.
The work of MTS d.o.o. in Kosovo was made possible by the agreement on telecommunications between Belgrade and Pristina, which was reached in 2013, i.e. 2015, whose implementation was confirmed in November 2016, when it was agreed that Telekom’s assets would be transferred to MTS d.o.o., a subsidiary of Telekom in Kosovo.
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