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"Mobile Telecom Service" Avoids Antitrust Investigation Due to Agreement with Qatar
The Almaty Court of Appeal canceled the investigation against "Mobile Telecom Service" over inflated SMS service prices. The decision was based on an international agreement between Kazakhstan and Qatar that guarantees the company protection from interference until 2027.
The company Mobile Telecom Service, which owns the Altel and Tele2 brands, succeeded in canceling the antitrust investigation initiated by the Agency for the Protection and Development of Competition of the Republic of Kazakhstan. The case was prompted by suspicions of inflated SMS notification service prices. The appellate panel of the Almaty court recognized the actions of the antitrust authority as violating the provisions of an international agreement and canceled the investigation in full.
The key basis for this decision was the Agreement on Long-Term Strategic Partnership between Kazakhstan and Qatar, signed on March 20, 2024, and ratified on October 30 of the same year. According to the annex to the document, Qatari Power International Holding acquires a 100% stake in Mobile Telecom Service. In return, the Kazakh side undertakes, until the end of 2026, not to interfere in the commercial and operational activities of the company, and not to initiate antitrust, tariff, or other inspections that may restrict pricing freedom or affect the quality of services provided.
The court found that the order of the Agency for the Protection and Development of Competition to initiate an investigation violated the provisions of this agreement, which has the status of an international treaty. Another case against Mobile Telecom Service related to rising mobile service prices was also canceled on the same legal grounds.
Initially, at the end of 2023, the Specialized Interdistrict Economic Court of Almaty partially upheld the company’s claims. In May 2024, the appeal confirmed this decision. However, a year later, the Supreme Court overturned both decisions, citing an incomplete analysis of the circumstances of the case, and sent it for retrial. The new appellate court panel then fully upheld the company’s position.
The acquisition of Mobile Telecom Service by Qatar’s Power International Holding was completed in January 2025. The deal amounted to $1.1 billion. Thus, the largest alternative mobile operator came under full foreign control.
The investment immunity provided until the end of 2026 effectively deprives Kazakh regulators of the ability to monitor the company’s activities. This raises concerns among experts regarding potential inequality in competition conditions and limitations on sovereign regulatory mechanisms.
The case of Mobile Telecom Service may create a precedent in which international agreements, including non-interference guarantees, become a legal shield against antitrust control, calling into question the balance of interests of the state, consumers, and private investors.
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