Based on the complaints brought by Magticom, Silknet, Akhali Kselebi and the Central Georgian Communications Corporation, the Communications Commission found Media Rights Georgia, Teleimedi, Mtavari Arkhi, TV Pirveli, POSTV, Formula and Media Holding to have violated Article 7 of the Law of Georgia on Competition, which prohibits agreements that are designed to restrict competition (so-called cartel agreements). The broadcasters were fined a symbolic sum of GEL 100 each due to this being the first precedent of the Commission ruling on a case based on the Law on Broadcasting.

The complainants claimed that the competing broadcasters united and used an intermediary company, “Media Rights Georgia,” to charge the transit companies a jointly established fee for broadcasting transit. According to them, a jointly imposed fee restricts competition and violates the Law on Competition. Thus, Magticom, Silknet, Akhali Kselebi and the Central Georgian Communications Corporation demanded that the defendants be held responsible and their agreement voided.

The Communications Commission spent 18 months examining the agreement between the broadcasters and the intermediary company, which established a uniform price for the transfer of broadcasting transit rights. The Commission ruled that the price fixing by rival broadcasters restricts competition and violates Article 7 of the Law of Georgia on Competition. Therefore, in addition to fining Media Rights Georgia, Teleimedi, Mtavari Arkhi, TV Pirveli, POSTV, Formula and Media Holding a symbolic sum of GEL 100 each, the Commission instructed the broadcasters to terminate the agreement within 1 month.

Within the scope of the same investigation, the Commission studied the issue of cooperation between broadcasters and broadcasting transitors in depth, and explained the issue to the stakeholders with reference to international practice.