Consumer affairs authority sues Melita over alleged misleading price hike practices

The Malta Competition and Consumer Affairs Authority (MCCAA) has initiated legal proceedings against telecoms provider Melita Limited over allegations of unfair commercial practices tied to a controversial price increase announced in August 2024.

In a formal notice issued on its website, the director general for consumer affairs confirmed that a sworn application was filed on 3 April 2025 in the First Hall of the Civil Court (Commercial Section). The case follows an investigation prompted by numerous consumer complaints.

The MCCAA’s investigation concluded there is a prima facie case that Melita breached several provisions of the law that cover misleading actions, omissions, and other unfair commercial practices.

At the heart of the dispute is Melita’s decision, announced on 1 August 2024, to raise monthly prices by up to €3.50, citing broadband speed upgrades as justification. While Melita offered subscribers the option to terminate their contracts without penalty or switch to a new plan, many consumers were concerned that they were not given the option to retain their existing service at the previous rate.

The MCCAA claims that Melita's notices and subsequent actions may have misled consumers, particularly due to omissions in the information provided and the absence of a status quo option. Melita, however, has denied any wrongdoing.

In response to criticism at the time, Melita explained that customers on 150, 300, and 500 Mbps connections were automatically upgraded to 500 or 750 Mbps, depending on their previous plan. The company said that price increases ranged from €1.50 to €3.50, and customers had 30 days to cancel their contracts without penalties if they did not wish to accept the changes.

The Malta Communications Authority (MCA), while clarifying its regulatory limits, stated that such contract amendments do not require MCA approval as long as providers issue a 30-day notice to subscribers.