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The document ceased to be valid since July 1, 2024 according to article 2 of the Law of the Azerbaijan Republic of December 8, 2023 No. 1051-VIQ

LAW OF THE AZERBAIJAN REPUBLIC

of March 4, 1993 No. 526

About anti-monopoly activities

(as amended on 19-12-2023)

Section I. General provisions

Article 1. Law purposes

The law determines the organizational and legal basis of the prevention, restriction and suppression of monopolistic activities.

Article 1-1. Antitrust law

The antitrust law of the Azerbaijan Republic consists of the Constitution of the Azerbaijan Republic, this Law, the laws of the Azerbaijan Republic "About natural monopolies", "About the unfair competition" and other regulatory legal acts.

Article 2. Scope of the law

1. The law acts on all territory of the Azerbaijan Republic (except the Alyatsky free economic zone) and extends on all legal entities and physical person.

1-1. The relations in the field of prevention, restriction and elimination of exclusive activities in the Alyatsky free economic zone are regulated according to requirements of the Law of the Azerbaijan Republic "About the Alyatsky free economic zone".

2. The law is applied and when agreements and agreements signed by business entities, bodies of authority and management with physical persons and legal entities of foreign countries lead to restriction of the competition in the national market.

3. The law does not extend to the relations following from the rights of business entities to inventions, useful models, industrial designs, trademarks, geographical indexes, copyright and the related rights, except as specified intentional use of these rights by them for the purpose of competition restriction.

Article 3. The state bodies of the Azerbaijan Republic performing the antimonopoly policy

State policy according to the prevention, restriction and suppression of exclusive activities, coordination of activities in this area of other state bodies is performed within the powers by relevant organ of the executive authority. The relevant organ of the executive authority can give instructions, obligatory for execution, in connection with violation of requirements of this Law and perform other powers established by the legislation.

Article 4. Basic concepts

For the purposes of this Law the following basic concepts are accepted:

executive bodies and managements - executive bodies and managements of the Azerbaijan Republic, its cities, areas and the administrative and territorial units entering them. Also the unions, associations, concerns, consortia and other associations of the companies in case of accomplishment of management functions treat governing bodies by them (placement of state orders, allocation of limits on the state resources, etc.);

subjects of the market are the business entities and governing bodies who are participants of the market relations;

the competition - such form of fight for optimum conditions of business activity between subjects of the market when their independent actions thoroughly limit possibilities of each of them to influence general terms of the goods circulation in the market and stimulate production of those goods which are required to the consumer;

means of restriction of activities - the means used by business entities for protection and isolation of area of the activities from competitors in this or that market and by that restriction of the competition in this market (occupancy by resources and sales channels, merge of business entities and absorption by one of them of another, the conclusion of agreements with the market sharing purpose, manipulation the purposes, setting out of competitors, patent monopoly, etc.);

dominant position - the exclusive provision of business entity giving it the chance, relying on superiority of the economic potential, to exert decisive impact on the competition and by that the complicating market penetration of other participants of the market. Holding dominant position is considered the business entity whose share in the market exceeds 35% or other extreme size established by the legislation;

monopolistic activities - activities of business entities or executive bodies and management, directed, being in this or that form monopolistic, on competition non-admission, its restriction or elimination;

market barriers - obstacles for access to the market new competitors (barriers to entry) and preventing to attempts of the business entities acting in the market to leave it (output barriers);

horizontal agreements - agreements between the business entities who are at one level of production chain or acting in the same market with the purpose to avoid the competition with each other;

vertical agreements - agreements between the business entities who are at the different levels of production chain or between business entities and their clients and suppliers of goods;

natural monopoly - the condition of the goods market which is the most effective for ensuring demand in the conditions of lack of the competition owing to technology features of production when made (realized) subjects of monopoly goods it cannot be replaced in consumption with other goods.

Section II. Monopolistic activities

Article 5. State monopolism

To the wrongful acts of executive bodies bringing or able to lead to restriction or elimination of the competition, infringement of interests of business entities and consumers, are ranked:

1. establishment for the business entities functioning out of public sector of economy, directives on production and sales of products and firm state orders;

2. unreasonable control of goods prices, made and implemented by independent business entities;

3. investment of organizational structures of management of the powers leading to competition restriction;

4. establishment of unreasonable prohibitions on movement of products between regions of the republic;

5. formation of the companies and other organizational and managerial structures which activities cause competition restriction;

6. the unreasonable provision to certain business entities of tax, credit and other benefits putting them in position of priority in relation to other subjects of the same market;

7. prohibition or restriction of production of certain type of goods (services) or certain type of productive activity, except as specified, stipulated by the legislation;

8. establishment of unreasonably low (high) customs duties for foreign business entities or release them from customs duty, except as specified, stipulated by the legislation;

9. imposing of prohibition on trading and purchasing activity or its restriction, except for trade in goods which production and sale are prohibited by the legislation;

10. establishment of unreasonable restrictions for foreign economic activity of business entities;

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