The consumer platform Halo, inspektore has submitted an official request to the Croatian Regulatory Authority for Network Industries (HAKOM), demanding an urgent amendment of the disputed decisions on the so-called indexation clause.

It is a mechanism that allows telecommunications operators to adjust their prices once a year in line with inflation, which in practice means an automatic increase in monthly bills for users.

This move is supported by an initiative of thousands of Croatian citizens who have been facing non-transparent service price increases for three years. In addition to HAKOM, the request was also sent to the Ministry of the Sea, Transport and Infrastructure and the Croatian Competition Agency (AZTN), thereby launching a coordinated legal action against the current regulatory practice.

The petition is available here.

The problem of the indexation clause and captive users

The main stumbling block is HAKOM's interpretation from January 2023. According to that interpretation, when an operator raises the price due to inflation, it is not considered a change in contractual terms. For the average citizen, this means that although their bill has become more expensive, they do not have the right to terminate the contract without paying high exit fees or so-called penalties.

While telecommunications companies are recording record business results and profits, all the risk of economic instability and rising costs has been shifted exclusively onto the backs of consumers. Users have thus found themselves in a subordinate position, without the possibility of exiting a contractual relationship that has become financially less favorable than at the time of signing.

European models as a solution for the Croatian market

In its request, the Halo, inspektore platform refers to concrete examples from the European Union and the United Kingdom, asking Croatian regulators to adopt proven successful models for protecting citizens.

The first proposal is based on the Irish model, which advocates the legal right to terminate. According to data from the Irish Government and the local regulator ComReg, any increase in the monthly fee, regardless of the reason, must be defined as a contract change. This guarantees the user the right to immediately terminate cooperation with the operator without any additional costs.

The second model comes from Malta, where the local communications authority (MCA) protects fixed prices within fixed-term contracts. According to this rule, if a user signs a 24-month contract, the price must remain the same until the end of that period. If the operator still wants to use the indexation clause, the contract with the user must not last longer than six months.

Finally, the British transparency model implemented by the regulator Ofcom is also proposed. It prohibits expressing price increases in unclear percentages such as the formula inflation plus three point nine percent. Instead, the operator is obliged to specify the exact amount of the future price increase in euros and cents already at the time of signing the contract.

The petition as the next step in the fight for citizens' rights

Given that official letters often end up in archives without a concrete response, the platform is also announcing strong public pressure.

On Thursday, 12 February at 9:02 the signing of the national petition begins. The goal is to gather a critical mass of signatures that will force the competent ministry and regulators to act.

It is emphasized that Croatian consumers must not be second-class citizens in the European Union. In this case, the passivity of regulatory bodies is considered a conscious choice, not a legal necessity, and an urgent response regarding the proposed changes is expected.

The petition is available here.

Time to redefine market balance

The case of the fight against the indexation clause in Croatia represents much more than a mere dispute over a few euros on a monthly bill. This is a matter of basic market fairness and protecting consumer dignity. At a time when citizens are under pressure from the general rise in the cost of living, the role of regulators such as HAKOM should be to protect the weaker party in the contractual relationship, not to ensure the stability of the profits of large corporations. Introducing the European standards written about by the Halo, inspektore platform is not just a desire, but a necessity if Croatia truly wants to belong to the modern European market sphere in which individual rights come before the interests of capital.