SBB under scrutiny over increase in cable TV prices – Commission initiates preliminary investigation

The Commission for Protection of Competition has initiated a preliminary investigation due to an increase in the prices of the services offered by the cable operator SBB, Novosti reports.

SBB notified the users in late 2017 that the fees for the monthly maintenance of the cable-distribution system and cable TV would be raised by RSD 100 from January 1.

Vecernje Novosti writes that the Commission has initiated a preliminary investigation due to suspicion that SBB has abused its dominant position in the market by raising the prices.

SBB was authorized by the Commission to purchase IKOM in March 2017, under the condition that it must send an explanation to the Commission for each price increase over the next two years.

Novosti reports that SBB has filed an explanation to the Commission and that it did notify the users about the price increase one month ahead, thereby adhering to the stipulations of the law.

SBB said that the users had had the right to terminate the contract before the date of the expiration, without paying for the costs of the termination, and that the only condition for the termination had been for the users to make a request 30 days before the activation of the new price list.

The Commission didn't find the explanation that the prices needed to be raised due to an increase in the number of channels to be convincing enough and the investigation was initiated accordingly.

If analyses show that the price increase was unjustified, that is, excessive, the Commission may penalize SBB in the amount of 10% of its annual income.

SBB d.o.o. Beograd

Komisija za zaštitu konkurencije Srbije

IKOM Beograd

price of cable distribution system

price of cable television

abuse of market position