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:

  1. 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]

  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.
  1. 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.
  1. Measures will be taken to eliminate existing monopolies by attracting the private sector and abolishing exclusive rights in accordance with the Plan.
  2. 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.