Russia: Announced FAS investigation into Megafon for alleged abuse of market power

On 25 September 2023, the Russian Federal Antimonopoly Service (FAS) launched an inquiry into telecommunications provider Megafon over allegations of unjustifiably raising tariffs. According to the FAS, Megafon hiked communication service rates for over 8.2 million subscribers, averaging a 10.24% increase, citing rising costs as the reason. However, Megafon's financial reports reveal a substantial reduction in expenses and a boost in net profit. Consequently, the FAS Russia has concluded that Megafon lacks a valid rationale for its tariff hikes, prompting the initiation of an antimonopoly case against the company on the grounds of alleged price-fixing. If found guilty, Megafon may be subject to fines under the Russian Federation's Code of Administrative Offenses.