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ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of June 2, 2012 No. 364

About approval of Rules on identification, suppression of agreements, the coordinated actions limiting the competition

(as amended on 05-10-2016)

According to the Law of the Kyrgyz Republic "About the competition" the Government of the Kyrgyz Republic decides:

1. Approve Rules on identification, suppression of agreements, the coordinated actions limiting the competition according to appendix.

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

 

Prime Minister

O. Babanov

Appendix

Approved by the Order of the Government of the Kyrgyz Republic of June 2, 2012 No. 364

Rules on identification, suppression of anti-competitive agreements, the coordinated actions limiting the competition

1. General provisions

1. Rules on identification, suppression of agreements, the coordinated actions limiting the competition (further - Rules), are intended for identification, suppression of agreements, coordinated actions of the business entities, state bodies and local government bodies limiting the competition and aimed at providing the state control of observance of the antitrust law in the Kyrgyz Republic.

The regulations established by these rules extend to the relations with participation of any business entities, irrespective of legal form and pattern of ownership, state bodies and local government bodies (further - subjects) which actions limit and eliminate free competition in the markets of the Kyrgyz Republic.

2. Forms of agreements, the coordinated actions limiting the competition

2. Agreements, the coordinated actions between subjects provided by part 1 of Article 7 and part 1 of article 7-1 of the Law of the Kyrgyz Republic "About the competition" are considered as horizontal and assume the introduction in associations or their creation (existence), the conclusion and implementation in any form of agreements, coordinated actions between the managing rival subjects, the arrangement to perform or implementation of other types of coordinate activities, directed to competition restriction.

This agreement type is directed to receipt of additional income at the expense of the consumer and to restriction of number of the acting competitors and access to the market of new business entities.

The conclusion of anti-competitive agreements, coordinated actions between subjects leads to increase in prices, decline in quality and reducing possibility of the choice.

Conditions of coordinated actions are actions of business entities in the goods market, the stipulated in Article 4-4 Laws of the Kyrgyz Republic "About the competition".

3. Vertical agreements come to light antimonopoly authority in the form of maintenance of the resale price and agreement signature between not competing business entities being at the different levels (the supplier - the consumer), but depending from each other on vertical (restriction of the price at which the seller can offer the resold goods), establishments of exclusive sale right within certain territory with fulfillment of requirements of the contract, forced reducing for the buyer of possibility of the choice of goods (works, services) according to part 2 of article 7 of the Law of the Kyrgyz Republic "About the competition".

Statements of physical persons and legal entities, state bodies and local government bodies can form the basis for hearing of cases about antitrust violation. The state antimonopoly authority and its territorial authorities (further - antimonopoly authority) have the right to initiate hearing of cases on detection of anti-competitive agreements, coordinated actions, including by results of the carried-out analysis of condition of competitive environment, based on messages of mass media.

The state control of the prevention, non-admission and elimination of anti-competitive agreements, coordinated actions performs antimonopoly authority of the Kyrgyz Republic.

4. Ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 05.10.2016 No. 530

5. Ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 05.10.2016 No. 530

6. Actions are qualified as approved if business entities:

1) do not undertake the obligation to adhere to any competition policy, but, nevertheless, consciously put the behavior into dependence on behavior of other parties, thereby, excepting the risk typical for the competition;

2) put economic pressure by means of threat of causing damage or the promise of representation of benefits with the purpose to force to adhere other business entities to certain policy;

3) put pressure upon other business entities to force them:

- join the agreement;

- go for merge;

- adhere to uniform behavior in the market for the purpose of competition control.

The paragraph of the eighth of Item 6 ceased to be valid according to the Order of the Government of the Kyrgyz Republic of 05.10.2016 No. 530

3. Stages of carrying out the analysis on detection of anti-competitive agreements, coordinated actions

7. Carrying out the analysis on identification of signs of restriction of the competition in agreements, coordinated actions is performed step by step.

8. At the first stage: the corresponding goods market and feature of goods is determined; the geographical boundary of the goods market is determined; the circle of the subjects of the market participating in the agreement, coordinated actions is established; the market shares having to subjects of the market - agreement parties, coordinated actions and their total market share are determined; the list of founders of subjects of the market is studied; the faces exercising control of activities of business entities, agreement parties are specified.

If the cases provided by part 4 Articles 7, parts 3 and 4 of article 7-1 of the Law of the Kyrgyz Republic "About the competition" are revealed, then further market research stops.

9. The analysis of the goods market is carried out according to the Rules according to the analysis and assessment of condition of competitive environment on commodity markets (works, services) approved by the Government of the Kyrgyz Republic.

10. When carrying out the analysis of features of goods are established:

- types of consumption of the considered goods. Differentiation of consumers of goods by types of consumption can be the reason of difference in the prices of the delivered goods that complicates the conclusion of the price agreement;

- goods at different suppliers are how homogeneous. On the one hand, on homogeneous goods other types of the competition, except price, are complicated, and with another, - the possibility of approval of the prices and other terms of agreement is facilitated;

- availability of interchangeable goods. In cases when goods are interchanged, price collusion practically does not make sense;

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