Commission dismisses GP’s jurisdiction challenge; Robi complaint to proceed

The Bangladesh Competition Commission (BCC) has rejected Grameenphone's bid to block its authority over a complaint by rival Robi, allowing the case on alleged anti-competitive practices to proceed.

Robi lodged the complaint in January, alleging that Grameenphone used aggressive market strategies to artificially lower SIM card prices, engage in predatory pricing, and impose discriminatory terms on retailers.

Grameenphone later challenged the Competition Commission's jurisdiction on the matter, but the commission dismissed the challenge, AHM Ahsan, chairperson of the BCC, told The Daily Star today.

"The complaint has been accepted, and the hearing date will be announced in due course," he added.

According to Robi's complaint, these practices violate competition laws, restrict rivals' access to the market, and could create a long-term monopoly. Banglalink has filed similar complaints, with its hearing scheduled next month.

Earlier, the commission held a formal hearing on September 17, attended by legal representatives of all three operators. During the session, Robi and Grameenphone presented their arguments, while Banglalink requested additional time to submit its position.

Robi and Banglalink have urged the commission to investigate Grameenphone's activities, prevent the sale of SIM cards below production and marketing costs, curb abnormal pricing, impose exemplary penalties, and ensure fair competition.

Shahed Alam, chief corporate and regulatory officer of Robi Axiata PLC, said, "We welcome the decision of the Competition Commission to rightfully proceed with the investigation into allegations of abuse of dominance and anti-competitive practices."

He described the move as a positive step towards ensuring a level playing field, where innovation and fair competition can thrive for the benefit of consumers and the industry. "We remain committed to cooperating fully with the commission and will continue to advocate for policies and practices that strengthen healthy competition in the market."

Meanwhile, Grameenphone, in a statement, said, "We have learned that an order has been issued. However, since we have not yet received any certified copy of the order, it is not possible for us to make any detailed comments at this moment.

"Still, we would like to firmly reiterate that Grameenphone has been conducting its business operations in compliance with the prevailing competition laws of Bangladesh. Grameenphone is in no way involved in any anti-competitive activities. We categorically reject all allegations related to pricing, marketing, and distribution."

Grameenphone also said the telecommunications sector in Bangladesh is strictly regulated by the Bangladesh Telecommunication Regulatory Commission (BTRC) and governed by the Bangladesh Telecommunication Regulation Act, 2001, which ensures fair competition, an open market, and the protection of consumer rights.

"As the regulatory authority, BTRC oversees market entry, pricing, and all competitive practices. Currently, as a Significant Market Power (SMP) operator, Grameenphone is operating strictly within the legal framework," the telecom operator noted.

"Our activities are carried out on the basis of specific regulatory directives, including asymmetric MNP lock-in, campaign approvals, interconnection charges, and more. In such a heavily regulated environment, the allegations brought against Grameenphone are baseless and merely reflect negative competitive motives," it added.