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Anty-monopoly regulation

Legislation

Anti-monopoly legislation of the Kyrgyz Republic consists of the Law of the Kyrgyz Republic, “On  Competition”, Law of the Kyrgyz Republic “On Natural and Permitted Monopolies”, Law of the Kyrgyz Republic “On Advertising”, and others laws and regulations.

The anti-monopoly authority and line  public authorities within the scope of their respective powers regulate and supervise natural and permitted monopolies. The public authority in charge of implementation of a general  state policy on protection and development of competition, state regulation and supervision of natural and permitted monopolies, prevention, restriction and restraint of monopoly activities and bad faith competition, and regulation of fuel and energy sector of the Kyrgyz Republic is the State Agency for Anti-Monopoly Regulation under the Government of the Kyrgyz Republic.

 

Unfair  Competition

 Unfair competition is any action of a business entity, which is aimed at obtaining an advantage against principles of good faith, reasonability and fairness, and may cause or has caused losses to competing business entities or damage to their reputation.

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The following actions are prohibited as unfair competition practices:

  • Unauthorized copying of the business entity’s goods and form of packaging and exterior design, except for the goods whose appearance is conditioned by their technical function;
  • Direct reproduction of the other business entity’s products by violating its patent rights;
  • Illegal use of another person’s trademark, service mark, appellation of origin, business name, capable of creating confusion with other business entity;

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Business entities which have a dominant position in the market are prohibited from taking the following actions which may limit competition and/or infringe upon interests of other business entities or citizens:

  • Impeding access to the market for other business entities;  
  • Withdrawal of merchandise from circulation with the purpose of or resulting in the creation and(or) supporting its deficit at the market or with the purpose of raising prices;
  • Imposing contractual terms on a counteragent which are disadvantageous for it or are irrelevant to the subject of the agreement (unfounded demands to transfer funds, other property, property rights, workforce of the counteragent, etc.);

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Anti-competitive agreements of business entities limiting competition

The following shall be prohibited as anti-competitive concerted actions of competing business entities:

  • Establishing (maintaining) prices (tariffs), discounts, allowances (surcharges), margins;
  • Increasing, decreasing or maintaining prices on the same level in the market;
  • Division of the market by territory, scope of sales or procurements, assortment of goods being sold, types of provided services or range of sellers or buyers (customers);

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Liability 

Persons guilty of violating antimonopoly law shall be held liable in accordance with Kyrgyz law. The imposition of liability shall not exempt the culprits from the obligation to execute the decision of the antimonopoly authority.

 

Powers of the Anti-Monopoly Authority

The anti-monopoly authority and its local offices  shall within the scope of their powers exercise state supervision of compliance with antimonopoly legislation of the Kyrgyz Republic, in particular:

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Methods of Anti-Monopoly Regulation:

  • Price regulation by the establishment of prices/tariffs or their limits; 
  • The establishment of profitability limits;
  • Identification of consumers/subscribers entitled to mandatory servicing, and/or establishment of minimal level of their supply in cases where their needs in goods/services produced/sold by a natural or permitted monopoly may not be fully satisfied, taking into account the protection of citizens’ rights and legal interests, national security, the protection of the environment, and the protection of cultural property;
  • The imposition of trade mark-ups;
  • The imposition of obligations on engineering and technical services being natural monopoly entities, development of respective nets of engineering and technical maintenance in case it is impossible to fully satisfy the demands for goods (services) manufactured (provided) by this entity.

 

 

 

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