The Almaty Court of Appeal overturned an antitrust investigation into Mobile Telecom-Service LLP (MTS), which owns the brands Altel and Tele2, concerning a case of overcharging for SMS notification services.
According to Kursiv.media, the basis for this was an international agreement between Kazakhstan and Qatar, which limits inspections and intervention in the company's activities until 31 December 2026.
It has become known that in late 2023, the specialised inter-district court of Almaty partially granted the petition by Mobile Telecom-Service to cancel the investigation. In May 2024, the appeal left this ruling unchanged.
However, a year later, the Supreme Court overturned the appeal decision, citing an incomplete examination of the circumstances, and sent the case back for a new hearing. Ultimately, the new panel of the appeal court fully overturned the investigation.
It has become known that on 20 March last year, Kazakhstan and Qatar signed, and on 30 October ratified, the Agreement on Long-Term Strategic Partnership.
The annex to the document stipulates:
- the acquisition by Qatar's Power International Holding of 100% of the stake in MTS;
- a prohibition for Kazakh state authorities until the end of 2026 to interfere in the commercial or operational activities of the company;
- a ban on conducting antitrust and other inspections that could lead to tariff restrictions or requirements regarding communication quality.
The overturning affected not only the case concerning SMS notification, but also a similar investigation by the Agency for the Protection and Development of Competition (AZRK) into tariff increases for mobile communication services.
It appears that under the terms of the ratified agreement, Kazakhstan has effectively lost the ability to control the tariff policy of Altel and Tele2 for the next two years, which may limit consumer protection in the communications sector.