April 13, 2022
Changes in antimonopoly legislation
On April 8, 2022, the Decree of the President No. UP-101 “On the next reforms to create conditions for stable economic growth by Improving the Business Environment and developing the Private sector” (hereinafter – the “Decree“) was adopted.
In order to improve the competitive environment, the Decree introduced a number of amendments to the antimonopoly legislation. In particular:
- Now legal entities or individual entrepreneurs, or a group of persons whose revenue from the sale of goods (services) for the last calendar year does not exceed 10’000 BRV (about 240’000 US dollars) are not recognized as occupying a dominant position in the commodity or financial market and, thus, antitrust measures cannot be applied to them.[1]
- From September 1, 2022, financial sanctions will be applied to business entities that have committed the following anti-competitive actions:
- Enter into agreements (coordinated actions) and coordination of economic activities leading to restriction of competition;
- Abuse of a dominant or monopoly position, as well as excellent bargaining power, unjustified overestimation of prices for strategically important products, unfair competition;
- Violate of competition law during mergers, acquisitions, as well as the conclusion of agreements on the acquisition of shares (stakes) in the authorized capital of business entities;
- Commit anti-competitive actions at public auctions and violating antimonopoly requirements.
- From September 1, 2022, administrative liability will expand for the following actions:
- Illegal restriction by state authorities of free movement and sale of raw materials, goods and services;
- Decision-making by organizations and bodies authorized to license, register, accredit and issue permits restricting competition
- Failure to provide the necessary documents and information, as well as the submission of false or unreliable information at the request of the antimonopoly authority.
- Measures will be taken to eliminate existing monopolies by attracting the private sector and abolishing exclusive rights in accordance with the Plan.
- From January 1, 2023, the Competition Development Index will be introduced.
[1] The exceptions are subjects of natural monopolies, participants in public procurement and exchange trading, as well as economic entities whose price of products is regulated by the state.