The Albanian Competition Authority (ACA) has announced that it will launch a comprehensive investigation into the country’s retail mobile service market in the coming days. The decision comes after a preliminary inquiry revealed potential signs of anti-competitive behavior among major telecom operators.
During a session in the Parliament of Albania, Denar Biba, Chairman of the Competition Commission, stated that the authority had gathered sufficient preliminary evidence to justify the opening of a full-scale investigation into the sector.
“The data collected so far indicate potential practices that could restrict competition in the retail mobile service market,” Biba declared.
Background of the Investigation
The preliminary phase began in January 2025, following a year-long monitoring process conducted in 2024. The assessment covered the period between January 1, 2022, and December 31, 2024.
The inquiry was initially triggered by several consumer complaints regarding price increases in prepaid mobile packages offered by Vodafone Albania and One Albania, the two main operators in the country.
Based on the information collected, the authority found that the conduct of these companies may violate Articles 4 and 9 of Law No. 9121, dated March 27, 2003, “On the Protection of Competition.” These provisions prohibit agreements and practices that restrict or distort competition in the market.
Focus on Consumer Protection
According to the Competition Authority, the mobile telephony sector remains one of its top priorities due to its direct impact on consumers. The institution emphasized its mission to ensure fair competition, prevent abuse of market power, and protect consumer interests.
Recent data from the Electronic and Postal Communications Authority (AKEP) reveal that the average expenditure of Albanian consumers on mobile services has been increasing for the fourth consecutive year.
In 2024, an average user spent around 9,200 ALL on mobile communications — a 16% increase compared to the previous year. This metric is based on Average Revenue Per User (ARPU), which measures the ratio between total retail service revenues and the number of active users.
Furthermore, the average cost per minute of mobile calls rose to 5.54 ALL per minute in 2024, again a 16% increase from 2023. This indicator, known as Average Revenue Per Minute (ARPM), calculates revenue from outgoing call minutes and reflects how much income operators generate from each minute of communication.
Market Consolidation and Price Increases
The reduction in the number of mobile operators in Albania over recent years has contributed to the rising prices of communication packages. Both Vodafone Albania and One Albania have adjusted their pricing structures for basic mobile plans — whether prepaid or postpaid — while simultaneously reducing the number of included units (minutes, messages, or data).
This double effect has led to an even higher effective cost per unit for consumers.
In early 2024, both companies introduced clauses in their general contract terms allowing them to index package prices annually based on the average annual inflation rate. The move, although contractually transparent, raised concerns about coordinated pricing behavior and consumer disadvantage, prompting closer scrutiny from regulators.
Financial Performance of Operators
According to AKEP’s financial reports, the two major telecom operators — Vodafone Albania and One Albania — recorded combined profits of approximately 1.68 billion ALL for 2024.
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Vodafone Albania achieved a net profit of around 1.2 billion ALL, a significant increase compared to 300 million ALL in 2023.
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One Albania reported a net profit of 476 million ALL, up from 70 million ALL the previous year.
In total, the two operators generated revenues of 27.93 billion ALL from electronic communications in 2024, marking an 8.9% increase year-over-year.
These figures suggest a robust financial growth in the sector despite rising costs for consumers — a pattern that often signals possible market concentration or limited competition.
Next Steps and Possible Outcomes
The deep investigation to be opened by the Albanian Competition Authority is expected to analyze contractual terms, pricing structures, and market coordination patterns between operators.
If anti-competitive behavior is confirmed, the Authority may impose significant financial penalties, demand corrective measures, and enforce greater transparency in pricing and contractual policies.
This case could set a major precedent for Albania’s digital economy and consumer rights protection, reinforcing the role of regulatory institutions in ensuring fair market practices.
The upcoming investigation highlights a growing concern about telecom market fairness and consumer affordability in Albania. As digital connectivity becomes increasingly essential, ensuring that competition remains open and prices fair is vital for both economic development and public trust.
Whether the investigation confirms cartel-like practices or merely parallel market behavior, its findings will likely shape the future of telecommunications regulation in the country for years to come.