Approved by the order of the Chairman of the Agency of the Republic of Kazakhstan on protection of the competition (The anti-monopoly agency) against February 12, 2009 No. 46-OD

Method of identification of monopsonicheska of low price

1. General provisions

1. The method of identification of monopsonicheska of low price (daleemetodik) is developed according to the Law of the Republic of Kazakhstan "About the competition" (further - the Law) and other regulatory legal acts of the Republic of Kazakhstan.

The purpose of this Technique is determination of procedure for identification of monopsonicheska of the low price established by the subject of the market holding monopsonichesky position in the corresponding goods market (further - the Subject).

2. This Technique is applied in case of the conducting investigation of abuse of the dominating or monopoly position as the buyer expressed in establishment of monopsonicheska of low price. The basis for investigation is receipt of data on establishment of monopsonicheska of low price which are:

1) the materials which arrived from state bodies with indication of on antitrust violation of the Republic of Kazakhstan;

2) statement of physical person and legal entity;

3) detection by antimonopoly authority when implementing the activities in actions of subjects of the market of signs of antitrust violation of the Republic of Kazakhstan;

4) appeal of mass media to antimonopoly authority.

3. The concepts and terms applied in this Technique are used in values determined in the laws of the Republic of Kazakhstan and also the following concepts:

The buyer is the subject of the market holding monopsonichesky position (further - the Subject).

The seller is subject of the market, the implementing goods (daleeprodavets).

2. Preliminary consideration of data on establishment of monopsonicheska of low price

4. The antimonopoly authority carries out preliminary consideration of data on establishment of monopsonicheska of low price in time, not exceeding one month from the date of their receipt. In cases, the stipulated in Article 59 Laws, antimonopoly authority has the right to extend the term of preliminary consideration, but no more than for one month.

5. During preliminary consideration of data on establishment of monopsonicheska of low price the antimonopoly authority carries out the following actions:

1) determines the fact of availability/lack of price regulation of the Seller in the goods market according to legal acts of the Republic of Kazakhstan.

2) determines the fact of monopsonichesky provision of the Subject;

3) specifies borders of the goods market in which the Subject buys products;

4) determines the fact of sales of goods by the Seller below cost.

6. The antimonopoly authority carries out the analysis of price performance and production volumes (realization) of goods in the goods market for the purpose of identification of the following signs of monopsonicheska of low price:

1) purchase of goods by the Subject at the prices is lower than that level which would develop in the competitive markets where subjects of the market have no monopsonichesky provision.

2) reducing production volumes and underexploitation of capacities of Sellers with demand for the sold (made) goods;

3) leaving from the market of two or more Sellers (producers) owing to the unprofitability of their activities provoked by the Subject.

7. By results of the carried-out preliminary consideration of data on establishment of monopsonicheska of low price the antimonopoly authority takes out the conclusion about results of preliminary consideration:

1) about conducting investigation of antitrust violations of the Republic of Kazakhstan if the signs of monopsonicheska of low price specified in Item 6 of this Technique are revealed;

2) about refusal in conducting investigation of antitrust violations of the Republic of Kazakhstan.

3. Actions for identification of monopsonicheska of low price when conducting investigation

8. When conducting investigation it is necessary to establish availability of the facts confirming actions of the Subject for establishment of monopsonicheska of low price.

9. For the purpose of identification of the facts of establishment of monopsonicheska of low price the antimonopoly authority determines the fact of unprofitability of other competitors of the Seller.

10. If the purchase price of goods of low price of that level which would develop in the competitive market or in the comparable goods market antimonopoly authority carries out expense analysis and profits of the Seller for the purpose of need assessment for production and realization of such goods, expenses and profit.

11. For decision making the antimonopoly authority carries out comparative analysis:

1) financial and economic activities of the Subject, Seller and his competitors;

2) loudspeakers of production and complete cost of goods of the Subject, Seller and his competitors;

3) price performance on goods of the Seller and his competitors;

4) loudspeakers of production volumes (realization) of goods of the Subject, Seller and his competitors;

5) agreements as a result of which directly or indirectly there is price of goods of the Seller and his competitors;

6) other proving materials provided by the Subject, the Seller and his competitors.

12. For acceptance of reasoned decision it is necessary to analyze structure of the prices of the sold (implementable) goods of the Seller of the checked products in dynamics.

In case of assessment of necessary costs of the Seller per unit of goods the method of comparative analysis of similar costs of other subjects in the corresponding goods market can be applied.

Besides, for additional reasons it is possible to compare growth rates of the prices, costs (individual clauses of costs) and the level of profitability of the Subject, the Seller and other subjects of the market in the goods market.

So, if growth rates of the prices of cost are lower, than growth rates of these indicators, than at similar subjects of the market, it can confirm in addition potential abuse with the dominating or monopoly position regarding establishment by the Subject of monopsonicheska of low prices.

13. If the goods purchase price the Subject is lower than the amount of expenses on production and realization of such goods and profit necessary for the Seller, then this price is recognized monopsonichesk low.

14. On analysis results the conclusion about availability or lack of the fact of establishment by the Subject of monopsonicheska of low price prepares.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info