Cyprus' Administrative Court has rejected an appeal by the Cyprus Telecommunications Authority (Cyta), upholding a 2018 decision by the Commission for the Protection of Competition and confirming a €1.16m administrative fine.
In a statement, the competition authority said the ruling validates both the legality of its procedures and the soundness of its legal and substantive conclusions, as well as compliance with the principles of administrative and EU law.
The court’s decision affirms that Cyta breached Article 6(1)(a) of the Protection of Competition Law, as in force at the time, leading to a total fine of €1,166,175.
Predatory pricing
The case stemmed from a complaint filed by Primetel, alleging potential violations of competition rules. In its August 2018 ruling, the court had found that Cyta held a dominant position in the retail markets for fixed telephony, broadband access and subscription television between 2009 and 2010.
Following an extensive review of financial data and economic analysis, the authority concluded unanimously that Cyta engaged in predatory pricing by offering its subscription television service “Cytavision”, as well as bundled packages combining Cytavision and DSL access, below cost during that period.
The Commission determined that this pricing strategy demonstrated an intention to exclude competition, constituting a breach of the law.
As a result, Cyta was fined €583,087.50 for predatory pricing of Cytavision and a further €583,087.50 for the bundled Cytavision and DSL services.
Claims of insufficient investigation dismissed
In its ruling dated 3 April 2026, the Administrative Court dismissed all grounds for annulment raised by Cyta. It found that the composition of the Commission was lawful, noting that the participation of new or substitute members in later sessions is permitted under national legislation, provided they are fully informed of the case file and proceedings.
On claims of insufficient investigation and reasoning regarding the definition of relevant markets, the court held that the Commission applied a properly justified methodology, drawing on EU case law and conducting a thorough assessment of the Cypriot market.
The court also rejected arguments challenging the finding of dominance and the existence of violations, concluding that the Commission’s analysis was based on comprehensive evidence, including factors beyond market share alone.
It further noted that Cyta failed to present evidence capable of undermining the Commission’s findings, instead limiting itself to verbal disputes of specific conclusions.
Finally, the court dismissed claims that the fine breached principles of proportionality and good administration, ruling that the Commission had duly considered the severity and duration of the infringement and provided sufficient justification for the penalty imposed.
CNA