Batelco found to have engaged in predatory pricing

June 28,2022

The case results from complaints submitted by stc Bahrain and Zain Bahrain respectively, alleging that Batelco had engaged in predatory pricing thereby breaching Article 65(a) of the Telecommunications Law and Article 11.1 of its Class License for Internet Services. The alleged breach relates to a speed offer Batelco had introduced for its fibre broadband packages in July 2020 which lasted for a period of 9 months.

Predatory pricing arises when a dominant Licensed Operator charges prices below its cost so that even equally efficient competitors cannot viably remain in the market.

The Telecommunications Regulatory Authority (“the Authority”) issued a notice of investigation under Article 65(e)(1) of the Telecommunications Law to Batelco. On 27 June 2022 Batelco entered into a voluntary settlement agreement with the Authority to resolve the investigation.

Subscribers who had subscribed to its fibre broadband packages during the infringement period  may exit their contract(s) without incurring any termination penalties, should they wish to do so. Affected subscribers will be able to (a) stay in their current subscribed packages, or (b) port out to a different service provider for a similar fibre broadband service.

The Authority’s decision may be found here

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