On the basis of the comprehensive study of the mobile communications market commissioned by ComCom, EU experts found that the Georgian mobile communications market is uncompetitive, and will remain so for at least another three years in the absence of ex-ante regulation, to the detriment of the consumers. The experts identified Magticom as an operator with significant market power, and outlined specific obligations for the company. Today the Commission published the results of the comprehensive study and draft decisions for public discussions. If, following these discussions, members of the Commission concur with the conclusion of the EU experts, Magticom shall be declared an operator with significant power, and will have the appropriate obligations imposed on it. 

During the initial phase of the comprehensive study, the retail market of mobile services was studied in accordance with the European Commission's market analysis guidelines. Having identified competition-related problems, it was necessary to establish the relevant wholesale markets and conduct three criteria tests to identify the wholesale markets that are potentially subject to ex-ante regulation. The experts concluded that the mobile services retail market and mobile access wholesale market in Georgia are characterised by low dynamism, scarcity of innovations and lack of progress. They emphasised that in the absence of ex-ante regulation, this situation will not change. Therefore, an additional in-depth study was conducted on the potentially regulated wholesale market. The EU experts identified an operator with significant market power and outlined specific obligations which, they claim, will improve the uncompetitive state of the mobile services market and create a variety of choices and affordable terms for consumers. 

As part of the public administrative proceedings on the comprehensive study, the Communications Commission will discuss the results of the market analysis at a public session on 6 June. Stakeholders will have until 17 May to submit their feedback regarding the results of the comprehensive study. Furthermore, the Commission ensured the involvement of Georgian operators at each stage of the research throughout the past two years. 

In 2022, ComCom launched a comprehensive telecom market study as part of the EU-funded Association Agreement Facility project. The study involved EU experts and was designed to enhance competition on the Georgian telecom market, provide consumers with diverse and affordable high-quality services, and bring the Georgian regulatory framework closer to the EU framework in accordance with the country’s obligations under the Association Agreement. The comprehensive study was carried out over a period of two years, and was unprecedented for the Georgian telecom market in its scale. The study was revised by experts from the EU Technical Assistance and Information Exchange (TAIEX) instrument.