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LAW OF UKRAINE

of January 11, 2001 No. 2210-III

About protection of the economic competition

(as amended on 09-08-2023)

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 state register of the subjects of managing made responsible for making of violation which is stipulated in Item 4 parts two of Article 6, Item 1 of article 50 of this Law in the form of making of the anti-competitive coordinated actions concerning misstatement of results of the biddings, auctions, tenders, tenders (further - the State register), - the single open automated system of accumulating, processing, accounting and provision of information on subjects of managing who within the last three years were made responsible for violation making, stipulated in Item 4 parts two of Article 6, by Item 1 of article 50 of this Law, in the form of making of the anti-competitive coordinated actions concerning misstatement of results of the biddings, auctions, tenders, tenders for the purposes of the Law of Ukraine "About public purchases";

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 assets which in total provide capability of the subject of managing to perform economic activity or to increase presence in the market in economically reasonable terms, in particular personal estate (the equipment, stock, raw materials, products, etc.), real estate (buildings, constructions, the parcels of land, etc.), rights to claim, debts, and also the right to trademark or other designation and other rights;

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 - possibility of one or several legal entities and/or physical persons to exert the decisive impact 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. Possibility of one or more (several) related legal entities and/or physical person to exert decisive impact - the method of the relations between subjects of managing which is characterized by absence at person concerning whom influence is performed to capability always independently (independently) to determine the economic behavior in the market;

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;

object of check subject of managing, consolidation, authority, local government body, body of administrative management and control on which check the order is accepted;

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, capital markets and the organized goods markets, 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;

full-function economic activity - capability of the subject of managing to perform economic activity and/or to increase presence in the market independently and irrespective of other subjects of managing connected with this subject of managing by the control relations including thanks to availability of sufficient resources for independent implementation of economic activity and to lack of need of commercial ties with activities of subjects of managing which are connected with this subject of managing by the control relations (including sale of products made by them, acquisition of raw materials for production any-what implementation of economic activity without entry into the market);

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 the subjects of managing connected by the control relations. 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);

The term "subject to privatization" is used in this Law in the value given in the Law of Ukraine "About privatization of the state-owned and utility property".

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.

The state control of compliance with law about protection of the economic competition, protection of interests of business entities and users against its violations in the field of media are performed by bodies of the Antimonopoly Committee of Ukraine according to the procedure, provided by the Law of Ukraine "About media".

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 is also creation of the subject of managing, associations, the purpose or consequence of creation of which coordination of competitive behavior between the subjects of managing who created the specified company, associations or between them and the newly created subject of managing or the introduction in such consolidation, except the cases provided by the Law of Ukraine "About media" is;

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. It is excluded according to the Law of Ukraine of 09.08.2023 No. 3295-IX

Article 7. Coordinated actions of small or average entrepreneurs

Provisions of article 6 of this Law are not applied to any voluntary coordinated actions of small or average entrepreneurs on joint purchase of goods which do not lead to essential restriction of the competition and promote increase in competitiveness of small or average entrepreneurs.

Article 8. Coordinated actions on delivery and use of goods

1. Provisions of article 6 of this Law are not applied to coordinated actions on delivery or use of goods if the participant of coordinated actions concerning other participant of coordinated actions sets restrictions on:

use of goods delivered them or goods of other suppliers;

acquisition at other subjects of managing or sale to other subjects of managing or to consumers of other goods;

purchase of goods which by the nature or according to trade and other fair customs in business activity do not belong to the subject of the agreement;

pricing or other terms of the contract about sale of the delivered goods to other subjects of managing or consumers.

2. Provisions of article 6 of this Law are applied to the coordinated actions provided by part one of this Article if such coordinated actions:

lead to essential restriction of the competition in all market or in its considerable part, including monopolization of the corresponding markets;

limit access to the market of other subjects of managing;

lead to economically unreasonable price increase or deficit of goods.

Article 9. Coordinated actions concerning intellectual property rights

1. Provisions of article 6 of this Law are not applied to devolution agreements of intellectual property rights or about use of object of intellectual property right in that part in which they limit the agreement party which transfers the right in implementation of economic activity if these restrictions are not beyond legitimate rights of the person of law of intellectual property.

2. It is considered that are not beyond the rights specified in part one of this Article, restriction on amount of the transferred rights, to the term and the territory of action of permission to use of object of intellectual property right, and also type of activity, the sphere of use, the minimum production volume.

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