LAW OF THE REPUBLIC OF TAJIKISTAN

of July 28, 2006 No. 198

About the competition and restriction of monopolistic activities in the goods markets

Chapter I. General provisions

Article 1. Law purposes

This Law determines the organizational and legal basis of restriction and suppression of monopolistic activities and unfair competition and is aimed at providing conditions for creation and effective functioning of the goods markets.

Article 2. Scope of the Law

This Law extends to the relations influencing the competition in the goods markets of the Republic of Tajikistan. Legal entities and physical persons, including foreign, public authorities, local executive bodies of the government, self-government institutions of the settlement and village participate in these relations. The law is applied and when actions and the agreements respectively made or signed by specified persons and bodies outside the territory of the Republic of Tajikistan bring or can lead to restriction of the competition or involve other negative effects in the goods markets of the Republic of Tajikistan.

This Law does not extend to the relations connected with intellectual property items, except as specified, when the agreements connected with their use are directed to competition restriction.

The relations connected with monopolistic activities and unfair competition in the markets of financial services, except as specified, when the relations developing in these markets exert impact on the competition in the goods markets, are regulated by other legal acts of the Republic of Tajikistan.

Article 3. Basic concepts

In this Law the following basic concepts are used:

- goods - object of the civil laws (including works, services), held for sale, exchange or other type of its introduction in civil circulation;

- financial services - banking services, insurance services and purchase and sale in the security market, leasing services, and also the services connected with attraction and (or) placement of money of legal entities and physical persons;

- interchangeable goods - the group of goods which can be comparable to destination to application method, quality and technical characteristics, the price and other parameters and the buyer really can replace them with each other in the course of consumption (including production);

- the goods market - the sphere of the address of the goods which do not have substitutes or interchangeable goods in the territory of the Republic of Tajikistan or its part connected with economic possibility of the buyer on purchase of goods in the corresponding territory and lack of this opportunity beyond its limits;

- business entities - legal entities, including foreign, their associations, and also the citizens who are engaged in business activity without formation of legal entity;

- the competition - free competitiveness of business entities when their independent actions effectively limit possibility of each of them unilaterally to influence general terms of the goods circulation in the corresponding goods market;

- discrimination conditions - conditions of access to the goods market, terms of the exchange, consumption, acquisition, production, sale, transfer of goods which put one or several business entities in unequal position in comparison with other business entities;

- unfair competition - any, directed to acquisition benefits in business activity, actions of business entities which contradict the legislation of the Republic of Tajikistan and can cause or caused losses to other business entities - competitors, either caused or are capable to cause damage to their goodwill;

- dominant position - the exclusive provision of business entity or several business entities in the market of the goods which do not have substitute, or interchangeable goods (further - certain goods) giving it (it) the chance to exert decisive impact on general terms of the address of goods in the corresponding goods market or to complicate access to the market to other business entities.

Dominant position also the provision of business entity which share in the market of certain goods constitutes over thirty five percent is recognized unless the business entity will prove that, despite exceeding of the specified size, its market position is not dominating.

The provision of business entity is recognized dominating and when its share in the market of certain goods constitutes less than thirty five percent if it is established by the state antimonopoly authority, proceeding from stability of share of business entity in the market, the relative size of the shares in the market belonging to competitors and (or) possibility of access to this market of the new competitors or other criteria characterizing the goods market. Cannot be acknowledged dominating provision of business entity which share in the market of certain goods does not exceed twenty five percent, cases except for provided below.

The provision of each of several business entities is recognized dominating if business entities did not prove that their provision is not dominating, concerning them the following conditions are satisfied:

- the cumulative share no more than three business entities, share of each of which is more than shares of other business entities in this market, exceeds fifty percent. This rule is not applied if share at least one of the specified business entities less than five percent;

- the cumulative share no more than five business entities, share of each of which is more than shares of other business entities in this market, exceeds seventy percent. This rule is not applied if share at least one of the specified business entities less than five percent;

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