„Young Barristers“ – In Georgia, even internet market and customer rights are determined by monopolistic companies

23 July, 2014

The organization “Young Barristers” addresses Georgian National Communications Commission and proposes to set an upper limit for internet servise tariff, which will allows to limit the monopolistic position of major companies, not to violate costumer rights with secret agreements about tariff policy between companies and to allow to have a choice of cheap internet-service.

According to statement made by the lawyer of “Young Barristers”, Nino Isakadze, actions of the internet providers on the market, offered tariff policy and costumer issues were thoroughly studied. From the information, received from public customer rights defendant, there is increasing number of discontent and complaint about internet providers and their services in the first part of 2014. Most of them concern the increased tariff and quality of the service. Most presented complaints are directed mainly towards two companies “Silknet” JSC and “Caucasus Online” JSC. Additional monitoring from the organization revealed that by March 31st, 2014, there are 7 public cases examined in the court against “Silknet” JSC. 

According to “Young Barristers”-s monitoring, by February, 2014, there are 126 active internet providers, but retailed share of the internet is distributed on next providers: “Caucasus Online” (42.9148%), “Silknet” (31.1657%), “Magticom” (7.0508%), “New Networks” (5.5134%), “Georgian Central Communication Corporation” (3.3545%), “Axtel” (2.2693%), “Vital Georgia” (1.1304%) and “A-Net” (0.6056%). In addition to this, two companies - “SIlknet” JSC and “Caucasus Online” JSC, are leading the market even in Tbilisi. According to the users, “Silknet” has a share of 26%, whilst “Caucasus Online” goes above 66%. They are followed by “Axtel” and “New Networks”. Other internet providers make up a small fragment of the market.

“Yong Barristers” estimate, that, in fact monopolistic position of “Silknet” JSC and “Caucasus Online” JSC on the market creates doubts about costumers right and interests falling under the agreement about tariff policy between two companies.  Analysis of the issue reveal, that in most cases, provided quality of the internet does not coincide with the terms of contract. In case of tariff increase, there are no priviledged offers even to the loyal costumers.

Organisation’s monitoring revealed, that Public Defender’s Office examined two complaint exactly on “SIlknet” JSC monopolistic position, whose authors point, that companu was taking advantage of non-competitive circumstances and was violating costumer rights by charging more on DSL packets.

Organisation shares the position, according to which, it is to be taken in into account one of the customers fundamental rights – freedom of choice, which according to recent situation on Georgian market, is rarely seen. Citizens do not have a real possibility to make use of cheap internet service, because Georgian Communications Commission has yet to set upper limit for the tariff. Accordingly, there is a doubt, that major companies on the market might be taking advantages of it, and defence of costumer rights and legal interests is left to unbalanced contract, that arose more than one problems.

„Young Barristers“ address Georgian National Communications Commission with recommendation and demands to hasten the decision about the issue:

  1. It is important to establish a reasonable upper limit for tariff on internet service and corresponding regulations.
  2. To thoroughly research internet market and charge monopolistic companies with legal responsibilities,
  3. To run a legal expertise on the contracts between costumers and companies, to exclude such advantages, that will directly or indirectly violate costumer rights,
  4. To fully monitor registred complaints, react effectively and solve the arguments timely,
  5. To impose tariff policy determination on institutional dialogue with the third party and for commission to ensure the acceptance of public opinion as recommendations during the examinations of the case.


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