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LAW OF UKRAINE

of January 11, 2001 No. 2210-III

About protection of the economic competition

(as amended on 14-01-2020)

This Law determines the legal basis of support and protection of the economic competition, restriction of monopolism in economic activity and is aimed at providing effective functioning of economy of Ukraine on the basis of development of the competitive relations.

Section I General provisions

Article 1. Determination of terms

The terms used in this Law have the following value:

the economic competition (competition) - competition between subjects of managing for the purpose of obtaining thanks to own achievements of benefits over other subjects of managing owing to what consumers, subjects of managing have opportunity to choose between several sellers, buyers, and the certain subject of managing cannot determine conditions of turnover of goods in the market;

single property complex - all types of property which in total provide economic activity of the subject of managing, including the building, construction, the equipment, stock, raw materials, products, rights to claim, debts, and also the right to trademark or other designation and other rights, including the rights to the parcels of land, including complete property complex;

information - data in any form and type and kept on any carriers (including correspondence, books, marks, illustrations (cards, charts, organigramma, drawings, schemes, etc.), photos, holograms, film, video, microfilms, sound records, databases of computer systems either complete or partial reproduction of their elements), explanations of persons and any other publicly announced or documentary data;

control - the decisive influence of one or several related legal entities and/or physical persons on economic activity of the subject of managing or its part performed directly or through other persons, in particular thanks to: to the property right or uses of all assets or their considerable part; to the right providing decisive influence on forming of structure, results of vote and the decision of governing bodies of the subject of managing; to the conclusion of the agreements and contracts giving the chance to determine conditions of economic activity, to give mandatory instructions or to perform functions of governing body of the subject of managing; to substitution of position of the head, deputy manager of the supervisory board, board, other supervisory or executive body of the subject of managing by person who is already occupying one or several of the specified positions in other subjects of managing; to occupation it is more than a half of positions of members of the supervisory board, board, other supervisory or executive bodies of the subject of managing by persons who are already occupying one or several of the specified positions in other subject of managing. The connected faces are legal entities and/or physical persons which jointly or in coordination perform economic activity, including jointly or in coordination influence economic activity of the subject of managing. In particular, as the related physical persons are considered such which are spouses, parents and children, brothers and (or) sisters;

the small and medium entrepreneur - the subject of managing, the income (revenue) from sales of products (goods, works, services) for the last financial year or asset cost of which does not exceed the amount equivalent to 500 thousand euros determined at the rate of the National Bank of Ukraine, acting in the last day of financial year if in the markets on which this entrepreneur acts, there are competitors with much bigger market share;

monopolization - achievement of managing by the subject of the exclusive (dominating) goods market position, maintenance or strengthening of this provision;

authorities - the ministries and other central executive bodies, the Verkhovna Rada of the Autonomous Republic of Crimea and executive bodies of the Autonomous Republic of Crimea, state bodies performing regulation of activities of subjects of natural monopolies, the security market, state bodies of privatization, National council of Ukraine concerning television and broadcasting, local executive bodies;

associations - associations of legal and (or) physical persons, including consolidation of the companies, and also public organizations;

bodies of administrative management and control subjects of managing, consolidation, other persons regarding accomplishment of management functions or control by them within the powers of authorities or local government bodies delegated by it;

bodies of the Antimonopoly Committee of Ukraine - the Antimonopoly Committee of Ukraine, permanent and temporary administrative boards of the Antimonopoly Committee of Ukraine, the state representative of the Antimonopoly Committee of Ukraine, administrative boards of territorial departments of the Antimonopoly Committee of Ukraine;

the market of goods (goods market) - the sphere of turnover of goods (interchangeable goods) on which during certain time and within certain territory there is demand and supply;

the subject of managing - the legal entity irrespective of legal form and pattern of ownership or the physical person performing activities for production, realization, purchase of goods, other economic activity, including exercising control over other legal entity or physical person; group of subjects of managing if one or several of them exercise control over others. Subjects of managing also public authorities, local government bodies, and also bodies of administrative management and control regarding their activities for production, realization, purchase of goods or other economic activity are recognized. Economic activity activities of physical person for purchase of goods of national consumption for final consumption are not considered;

goods - any subject of economic circulation, including products, works, services, documents, confirmatory obligations and the rights (in particular securities).

Article 2. Scope of the Law

1. This Law governs the relations of public authorities, local government bodies, bodies of administrative management and control with subjects of managing; subjects of managing with other subjects of managing, with consumers, other legal entities and physical persons in connection with the economic competition.

2. This Law is applied to the relations which influence or can influence the economic competition in the territory of Ukraine.

Article 3. Legislation on protection of the economic competition

1. The legislation on protection of the economic competition is based on the regulations established by the Constitution of Ukraine and consists of this Law, the laws of Ukraine "About the Antimonopoly Committee of Ukraine", "About protection against unfair competition", other regulatory legal acts adopted according to these laws.

2. If the international treaty which consent to be bound is this the Verkhovna Rada of Ukraine establishes other rules, than those which contain in this Law then are applied rules of the international treaty.

3. Features of application of the legislation on protection of the economic competition, in particular rather certain industries, can be established only by introduction of amendments to this Law.

Article 4. State policy in the field of development of the economic competition and restriction of monopolism

1. State policy in the field of development of the economic competition and restriction of monopolism in economic activity, implementation of measures for demonopolization of economy, financial, material, information, advisory and other support of the subjects of managing promoting competition development is performed by public authorities, local government bodies and bodies of administrative management and control.

2. Subjects of managing, authorities, local government bodies, and also bodies of administrative management and control shall promote development of the competition and not make any wrongful acts which can have negative influence on the competition.

3. Public authorities within which competence ensuring state regulation and management in the corresponding industries of economy is carry out market monitoring of these industries for the purpose of the analysis and forecasting of their development.

4. The state control of compliance with law about protection of the economic competition, protection of interests of subjects of managing and consumers from its violations are performed by bodies of the Antimonopoly Committee of Ukraine.

5. Authorities, local government bodies, bodies of administrative management and control shall assist the Antimonopoly Committee of Ukraine in implementation of its powers in the field of support and protection of the economic competition, restriction of monopolism and control of compliance with law about protection of the economic competition.

6. For the purpose of identical application of regulations of the legislation on protection of the economic competition, including the legislation on protection against unfair competition, the Antimonopoly Committee of Ukraine makes referral explanations concerning application of this legislation.

The Section II Anti-competitive coordinated actions of subjects of managing, abuse of the exclusive (dominating) market position

Article 5. Coordinated actions

1. Coordinated actions are the conclusion subjects of managing of agreements in any form, acceptance by associations of decisions in any form, and also any other approved competitive behavior (activities, failure to act) of subjects of managing.

Coordinated actions are also creation of the subject of managing, consolidation, the purpose or consequence of creation of which is coordination of competitive behavior between the subjects of managing who created the specified subject of managing, consolidation or between them and the newly created subject of managing, or the introduction in such consolidation.

2. Persons who make or intend to make coordinated actions are participants of coordinated actions.

Article 6. Anti-competitive coordinated actions of subjects of managing

1. Anti-competitive coordinated actions are coordinated actions which brought or can lead to non-admission, elimination or restriction of the competition.

2. Anti-competitive coordinated actions, in particular, the coordinated actions concerning are recognized:

1) price fixation or other conditions of acquisition or sales of goods;

2) restrictions of production, commodity markets, technical technology development, investments or establishment of control over them;

3) distributions of the markets or sources of supply by the territorial principle, range of goods, amount of their realization or acquisition, around sellers, buyers or consumers or on other signs;

4) misstatements of results of the biddings, auctions, tenders, tenders;

5) elimination from the market or restriction of access to the market (exit from the market) other subjects of managing, buyers, sellers;

6) applications of different conditions to equivalent agreements with other subjects of managing that handicaps the last in the competition;

7) the conclusions of agreements on condition of acceptance by other subjects of managing of additional obligations who on the content or according to trade and other fair customs in business activity do not concern subject of these agreements;

8) essential restriction of competitiveness of other subjects of managing in the market without the reasons which are objectively justified on that.

3. Anti-competitive coordinated actions are considered to lead also making by subjects of managing of the similar actions (divergence) in the market of goods which brought or able to non-admission, elimination or restriction of the competition if the analysis of situation in the market of goods confutes availability of the objective reasons for making of such actions (divergence).

4. Making of anti-competitive coordinated actions is forbidden and attracts responsibility according to the law.

5. The person who made anti-competitive coordinated actions, but before other participants of these actions voluntarily reported about it the Antimonopoly Committee of Ukraine or its territorial department and provided information which has essential value for decision making on case, is exempted from liability for making of anti-competitive coordinated actions, the stipulated in Article 52 presents of the Law.

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