The Competition Protection Agency (AZNT) has initiated proceedings against HT, A1, and Telemach, alleging that they colluded and coordinated prices by introducing an index clause.

AZNT announced this information on its website on February 7th, 2024. Their aim is to determine whether Croatian telecom giants, along with representatives of HUP-ICT, coordinated and agreed on price increases, thereby violating Article 8 of the Competition Protection Act.

It is a fact that their service prices are quite similar, and only when comparing telecommunications service prices across Europe can differences from market to market be seen. What the price differences are and why they are so significant remain to be questioned.

The agency claims that they eliminated uncertainty about their future by introducing an index clause that tracks inflation.

This also limited inter-company market competition, which would mean they formed a cartel, prohibited by law.

The initiation of proceedings does not imply guilt, but such business practices are at least suspicious, especially when the three largest telecom companies in Croatia make the same business decision.

The telecoms reject these assumptions, claiming they operate transparently and in accordance with all regulations.

HT denies these allegations, stating they adhere to the highest professional and business standards and reject these assumptions, vowing to prove in the proceedings that there was no exchange of information or agreements.

A1 stated that it is solely a business decision of the company and that they comply with EU regulations and all proceedings are conducted in accordance with HAKOM’s Expert Opinion, and they cooperate with AZNT.

Telemach declined to comment on ongoing proceedings but stated they adhere to all regulations.

In 2023, they were allowed to adjust their price lists based on the inflation rate from 2022, which was 10.8%.

All three mentioned telecoms utilized the index clause and the possibility of price adjustments in 2023.

They increased their services as follows: HT by 5%, A1 by 8.5%, and Telemach by 8.3%. How this investigation will unfold remains to be seen.