Beeline’s aggressive promotions ignite fierce competition row in Kazakhstan
Beeline has sparked controversy in Kazakhstan with two new promotions aimed at rival mobile operators. The company now faces accusations of unfair competition and abuse of its market position. Competitors and consumer groups have already filed complaints with the country’s Financial and Competition Agency (FAS).
The dispute began when Beeline introduced two offers in early June. The first gave customers 50 kopecks for every minute of an incoming call from another network. The second provided a 50% discount to users switching from MTS, Megafon, or Tele2. Rival operators quickly condemned the moves, claiming they were designed to undermine their businesses.
Legal experts have warned that these promotions could breach antitrust rules. If formally challenged, the FAS will review whether Beeline’s actions violate competition laws. The agency has the power to intervene if the schemes are deemed harmful to market fairness.
Meanwhile, MTS has already faced regulatory scrutiny over its own pricing. After the FAS ruled against an 8% tariff increase, the company agreed to reverse mobile rates to April-May 2024 levels. MTS will also pay 664 million rubles ($7.2 million) into the federal budget and invest 2.4 billion rubles ($26 million) in expanding networks across small towns.
Beeline’s parent company, Veon, has defended the promotions. It compared them to common banking practices, such as cashback rewards, and stated it would continue the offers despite the backlash.
The FAS has yet to open a formal investigation but will assess Beeline’s promotions if a complaint is lodged. If found in violation, the company could face penalties or be forced to alter its schemes. Rival operators have made clear they are prepared to escalate the matter through legal channels.
