Sale of 100% Share of 'Caucasus Online' to Azerbaijani Company Declared Illegal by Expert

The telecommunications regulatory authority of Georgia has announced that the transaction involving the sale of 100% of 'Caucasus Online' to an Azerbaijani company is illegal. This was stated by Grigor Saghyan, founder of the 'Internet Community' organization, in an interview with Factinfo.

Previously, it was reported that the Azerbaijani company managed to acquire 100% of the shares of the Georgian 'Caucasus Online'. Notably, the company provides about 85% of Armenia's internet.

Grigor Saghyan indicated that a year ago, the Azerbaijani company purchased 49% of the shares, and now, taking advantage of the mixed pandemic situation, they acquired the remaining 51% without coordinating with the regulatory authority. He commented, “I don’t know what their legislation is like, but it is possible that the regulatory authority may annul or invalidate the contract of sale. We will see what happens.”

Addressing the potential risks, including the possibility of disrupting Armenia's internet connection, Grigor Saghyan does not believe they would take such a step. “The logic of blocking communication lines is unlikely, as the trilateral agreement of November 9 implies overall unblocking and opening of communication lines. The shareholder and management are different entities, and the final decision is made by the manager, not the shareholder. Why would they cut off Armenia's internet connection? In that case, they would gain a reputation as an unreliable partner and also lose the revenues generated by 'Caucasus Online',” he stated.

He further noted that we have at least several alternative communication routes, one to Persia and another through the seabed of the Black Sea, via the 'Novorossiysk' route. In extreme cases, the possibility of using satellite communication is available, which is quite affordable.

Regarding eavesdropping, he mentioned that the traffic flowing over the internet is mainly encrypted. Armenian websites use the 'https' protocol. I urge those who operate websites to definitely purchase certificates so that the information on their sites is transmitted encrypted. It is also advisable to use an electronic signature. Everyone has the opportunity to encrypt their responses and send them; for that, an electronic signature should be installed, which will keep emails encrypted as well. As the saying goes, 'Keep your door closed, don’t tell the neighbor your secrets,'” Grigor Saghyan remarked.