The Competition Regulatory Authority (ARC) spoke out this Monday, 17 June, about the resolution of the National Communications Institute of Mozambique (INCM), arguing that the institution violated the Telecommunications Law and the Constitution of the Republic by setting the minimum tariffs for mobile telephony in the country, suggesting that Resolution no. 01_BR/CA/INCM/2024 be revoked, not suspended.
In a statement, ARC argues that the resolution that dictated the increase in prices charged by mobile phone companies should not just be suspended, as the government recommended to INCM, but revoked.
The ARC, which has an obligation to ensure fair competition in the market, says it was never consulted by the INCM and doesn’t understand where it got the need to avoid unfair competition to justify setting minimum prices for communications. The ARC also explains that the INCM has never communicated such unfair competition or even substantiated or demonstrated it, and accuses the institution of violating the law by approving and publishing the resolution.
“The INCM’s intervention not only goes against the principles defined in the Regulation of Criteria and Principles for Setting Telecommunications Tariffs, but also violates the provisions of the Telecommunications Law, by significantly increasing the tariffs for consumer telecommunications services,” the statement reads.
The document also points out that “the INCM, by interfering in the determination of integrated packages, restricts and limits the creativity and capacity for innovation of telecoms operators in the design of packages considered suitable for certain market segments and types of customers and for their commercial activity in general, which constitutes a clear violation of the principle of free competition”.
The Competition Regulatory Authority also clarifies that with the regulatory intervention in the relevant markets through the determination of lower retail tariff limits imposed on all operators, through Resolution no. 01_BR/CA/INCM/2024, of 19 February, “the INCM acted against the objectives defined in the legal diplomas that served as the basis for the adoption of the aforementioned resolution. No. 01_BR/CA/INCM/2024, of 19 February, “the INCM acted against the objectives defined in the legal diplomas that served as the basis for the adoption of the resolution in question, especially the guarantee of fair, reasonable and non-discriminatory tariffs for consumers, insofar as mobile telephony tariffs were significantly worsened by the fact that they were above the tariffs previously practised by operators. By imposing lower tariff limits on all operators, competition between them is restricted and the consumer is also harmed”.
The competition regulator concludes by saying that “the constitutional principle of state action as a regulator and promoter of economic and social growth and development underpins the idea that state intervention should only ensure that markets function efficiently, that resources are optimally allocated, that innovation is promoted and that consumer interests are protected”.
The ACR explains that its position is based on a study it carried out on the matter and demands to be included in the study to be carried out by the INCM on the recommendation of the Council of Ministers.
