RESOLUTION OF THE CABINET OF MINISTERS OF THE KYRGYZ REPUBLIC

of September 27, 2022 No. 529

About approval of the Procedure for identification of exclusively high (low) price

For the purpose of implementation of articles 4-1 and 4-2 of the Law of the Kyrgyz Republic "About the competition", according to articles 13, of the 17th constitutional Law of the Kyrgyz Republic "About the Cabinet of Ministers of the Kyrgyz Republic" the Cabinet of Ministers of the Kyrgyz Republic decides:

1. Approve the Procedure for identification of exclusively high (low) price according to appendix.

2. This resolution becomes effective after fifteen days from the date of official publication.

Appendix

to the Resolution of the Cabinet of Ministers of the Kyrgyz Republic of September 27, 2022 No. 529

Procedure for identification of exclusively high (low) price

1. General provisions

1. This Procedure is developed according to parts 3 of articles 4-1 and 4-2 of the Law of the Kyrgyz Republic "About the competition" and is applied by antimonopoly authority in case of identification of exclusively high (low) price established by the business entity holding dominant position in the goods market.

2. In this Procedure the concepts determined by the Law of the Kyrgyz Republic "About the competition" and also the following concepts are used:

- the comparable goods market - the goods market comparable on the list of buyers or sellers of goods, conditions of the address of goods, conditions of access to the goods market, state regulation, including the taxation, customs and tariff, tariff and non-tariff, in the presence of such market in the territory of the Kyrgyz Republic or beyond its limits;

- competitive price of goods - maximum price of goods in this goods market which in the conditions of the competition is established by the business entities who are not entering one group of persons with the business entity holding dominant position. At the same time the business entities corresponding to condition of competitiveness of business entities in case of which their independent actions effectively limit possibility of each of them unilaterally to influence general terms of the goods circulation in the corresponding goods market are considered.

3. Exclusively high price of goods is understood as the price established by the business entity holding dominant position if:

1) this price exceeds the highest price which in the same goods market in the conditions of the competition is established by the business entity who is not entering one group of persons with the business entity holding dominant position or exceeds the price in the comparable goods market which was created in the conditions of the competition;

2) this price exceeds the amount necessary for production and realization of such goods of expenses and profit margin, developed at business entities in the conditions of the competition.

The price established by the subject of natural monopoly within the prices (rate) for such goods determined according to the Law of the Kyrgyz Republic "About natural monopolies in the Kyrgyz Republic" and also the price of the goods which are result of innovative activities, that is the activities leading to creation of new not interchangeable goods cannot be acknowledged exclusively high.

4. Exclusively low price of goods is understood as the price established by the business entity holding dominant position if:

1) this price of low price which in the same goods market is established by the business entity who is not entering one group of persons with the business entity of the market holding dominant position or the low price which was created in the conditions of the competition in the comparable goods market;

2) this price is lower than the amount of actual expenses on production and realization of such goods.

The goods price if is not recognized exclusively low:

1) it not the low price which was created in the conditions of the competition in the comparable goods market;

Its establishment by the seller of goods did not entail 2) or could not entail restriction of the competition in connection with reducing number of the business entities who are not entering with sellers or buyers of goods one group of persons in the corresponding goods market.

5. The antimonopoly authority carries out the analysis of justification of the change in price of the business entities holding dominant position in case of:

- carrying out economical and statistical observation of the business entities holding dominant position in the goods market;

- carrying out the analysis and assessment of competitive situation in the goods markets;

- consideration of addresses (statements, claims);

- implementation of stipulated by the legislation functions on control of observance of the antitrust law.

2. Identification of exclusively high (low) price

6. The antimonopoly authority for the purpose of identification of signs of exclusively high price of goods established by the business entity holding dominant position carries out the analysis of price performance and production volumes (realization) of goods, including:

1) establishment by business entity of the price of goods, on which provision of business entity acknowledged dominating, the exceeding price of the same goods of other business entities of the market in the corresponding or comparable goods market;

2) exceeding of growth rates of the prices of goods, on which provision of business entity acknowledged dominating, in comparison with the corresponding growth rates of the prices in the corresponding or comparable goods market;

3) increase in prices for goods, on which provision of business entity acknowledged dominating, by decrease in physical characteristics (for example, commodity unit weight);

4) unreasonable reducing production volumes and (or) deliveries or cessation of production and (or) deliveries of goods on which there are demand or orders of consumers, in the presence of possibility of production or delivery.

7. The antimonopoly authority for the purpose of identification of signs of exclusively low price of goods established by the business entity holding dominant position carries out the analysis of price performance and production volumes (realization) of goods, including:

1) establishment by business entity of the price of goods, on which provision of business entity acknowledged dominating, the low prices of the same goods of other business entities in the corresponding or comparable goods market;

2) exceeding of rates of reduction of prices of goods, on which provision of business entity acknowledged dominating, in comparison with the corresponding rates of reduction of prices in the corresponding or comparable goods market.

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