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Prosecutor's office slams PIK for blocking internet providers in residential complexes
Investigators Discover Misconduct in PCC's Operational Practices
It seems the managing organization of PIK, a significant real estate developer, is stirring up some antitrust controversy. According to recent reports, PIK has been blocking requests from telecom giants MTS and Rostelecom to access certain residential complexes they manage. This action is alleged to violate housing legislation and undermine principles of fair competition, causing potential harm to consumers and residents, as stated by the prosecutor's office.
Speaking about the situation, Yaroslav Nílov, a deputy, has hinted at plans to amend existing antitrust legislation to address such issues. His proposed solution? Increasing fines for violations tenfold, particularly for blocking alternative providers in residential complexes.
In May, the Federal Antimonopoly Service (FAS) of Russia uncovered restrictions on operators' access to PIK's residential complexes in several regions. Lovit, a provider owned by PIK, was the sole provider in these houses. The FAS has demanded justification for blocking specific providers in apartment buildings and promised stern antitrust action if their concerns are confirmed.
The FAS launched an investigation into these issues at the end of March 2025 following a massive Lovit outage that left users without internet access for three days. Various issues such as poor provider website performance, inability to access personal accounts, and even problems with magnetic keys and apartment intercoms ensued.
Stay tuned for more updates on this developing story. In the meantime, let's hope the FAS cracks down hard on blocking tactics in the telecom sector and helps our internet use stay smooth and uninterrupted.
You might've missed:- Big telecoms using underhanded tactics to influence public opinion and squash competition (1)- DOJ and FTC scrutiny of regulations that hinder competition in various sectors, including broadband (2)- The deteriorating user experience on the internet due to lack of competition in the tech industry (4)
Sources:1. http://www.cnbc.com/2020/04/15/how-americas-biggest-internet-companies-compete-and-win.html2. https://www.ftc.gov/news-events/speeches/how-us-agencies-plan-promote-competition-technology-sector3. https://www.theregister.com/2018/09/27/tech_monopolies_have_deteriorated_internet_user_experience/4. https://www.washingtonpost.com/opinions/2021/02/25/politics-starts-when-tech-giants-gobble-up-their-competitors/
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- The controversy surrounding PIK's alleged blocking of internet providers in their residential complexes highlights the need for policy-and-legislation reforms in the politics of antitrust legislation, as hinted by deputy Yaroslav Nílov, who has proposed increasing fines for such violations.
- As the general-news of the Prosecutor's Office investigating PIK's potential anti-competitive practices unfolds, it underscores the relevance of ongoing discussions about the impact of monopolies on the user experience in the tech industry and the role of policy-and-legislation in maintaining fair competition.
