Commission investigates MYT package of Mauritius Telecom

This is being done under the Competition Act 2007.

MyT is a package deal offering high-speed internet access, TV, international calls and other services as a package.

The CCM is concerned that Mauritius Telecom (MT) might be using its effective monopoly of broadband Internet products to gain a competitive advantage in the sale of competitive products such as TV services and international calls.

This could take the form of refusal to supply the higher-speed products except as part of a package, or for example through pricing the MyT bundle against the ‘ADSL-only’ service in a way that unduly influences customers to choose MyT.

The investigation is being carried out under the monopoly situations provisions of the Competition Act. If the CCM finds that MT’s actions have the object or effect of “restricting, preventing or distorting competition”, then the commission can impose remedial measures on MT.

John Davies, executive director of the CCM said, “Several people have come forward to express concerns about MyT.”

The package mixes together broadband Internet, a product in which MT has a monopoly with products such as international calls and TV services, in which it competes with other companies.

“There is nothing necessarily wrong with that. Such packages might be in the interest of vigorous competition and convenient for customers. But if customers are unduly influenced towards buying TV services and international calls from MT, just because of its broadband monopoly, that could damage competition in those markets,” said Davies.

He added, “I decided that we needed to investigate this matter in detail to understand whether the current offering has anti-competitive effects. I look forward to working with MT, its competitors, the Information and Communications Technology Authority (ICTA) and other interested parties on this matter.”

The CCM has a memorandum of understanding (MoU) with the ICTA, setting out how the two agencies will work together in exercising their respective powers in the sector.

The CCM will conduct its investigation independently, but will seek the advice and opinions of the ICTA throughout
the case.

If it finds a breach of the monopoly provisions of the Competition Act, the CCM has the power to force sales of assets or businesses or require changes in company behaviour to remedy the situation.