ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of June 11, 2012 No. 391

About approval of Rules about forced separation (allocation) of business entities

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

1. Approve Rules about forced separation (allocation) of business entities according to appendix.

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

Appendix

Approved by the Order of the Government of the Kyrgyz Republic of June 11, 2012 No. 391

Rules about forced separation (allocation) of business entities

These rules about forced separation (allocation) of business entities (further - Rules) determine conditions, procedure and methods of separation (allocation) of the business entities holding dominant position and performing the activities in the territory of the Kyrgyz Republic.

1. General provisions

1. In case of systematic implementation of monopolistic activities by the business entity holding dominant position, the state antimonopoly authority (further - antimonopoly authority) has the right to make the decision on forced separation of such organizations or the decision on allocation from their structure of one or several organizations.

2. The decision on forced separation or allocation of business entities is accepted in the presence of one or several following conditions:

Leads 1) to development of the competition in the market;

2) there is possibility of isolation of structural divisions of the organization;

3) there is no technology caused interrelation of structural divisions of the organization;

4) there is possibility of independent activities in the corresponding market for the legal entities created as a result of reorganization.

3. The possibility of technology isolation of the companies depends on number of factors. Treat them:

1) nature of production process (continuous, periodic, temporary);

2) production organization type (business lot, small-scale);

3) the nature of the made goods (standardized, homogeneous or unique, single, differentiated);

4) level of technical equipment of production (fondo-and installed power per employee of work, extent of automation of production process, performance and mobility of engineering procedure).

4. The question of forced separation of the business entities holding dominant position or the decision on allocation from their structure of one or several organizations is considered by antimonopoly authority.

The business entities created as a result of forced separation (allocation) cannot enter one group of persons.

2. Procedure for consideration of materials about separation (allocation) of business entity

5. The basis for consideration of question of separation (allocation) of the business entity holding dominant position are the facts of abuse of the business entity holding dominant position, and systematic implementation of monopolistic activities revealed as a result of statements (addresses) of state bodies, local government bodies, public organizations, business entities, publications in mass media.

6. Applications (addresses) are submitted in antimonopoly authority in writing, with application of documents, the signs of violation by business entity of the antitrust law confirming availability.

7. The antimonopoly authority by consideration of material about separation (allocation) of business entity invites the applicant and the representative of the interested business entity.

8. In each case in case of the solution of question of separation (allocation) of the business entity holding dominant position expertize about opportunity and feasibility, and also social and economic effects of separation (allocation) of business entity is carried out.

9. The commission of experts is created from specialists of antimonopoly authority and interested persons, whose rights and legitimate interests are infringed in connection with consideration of the case about antitrust violation, involved in the procedure of separation (allocation) of business entity. The commission of experts consists of 5 people. By results of work of commission of experts the conclusion which has advisory nature is constituted, conclusions of the commission are obligatory by consideration of question of separation (allocation) of business entity.

The antimonopoly authority has the right to attract independent experts to participation in consideration of the case.

10. The conclusion of commission of experts shall contain data on influence of separation (allocation) of business entity on:

- saturation of the republican (regional) market by goods (works, services);

- improvement of consumer properties of goods (works, services);

- decrease (increase) in the prices of certain types of goods (works, services);

- size of increase (decrease) of employment of the population of the republic (certain region);

- increase (decrease) in level of the income of the company.

11. Persons participating in consideration of material have the equal rights, can get acquainted with materials, the conclusion of commission of experts, to offer written explanations, to declare petitions for transfer of consideration of the case, for involvement of independent experts, to provide additional documents on the interesting questions.

Material can be considered also in the absence of the applicant or other interested persons under condition if they are properly notified on material consideration time, and from them the motivated petition for adjournment of the considered material did not arrive.

12. Material about separation (allocation) of the business entity holding dominant position and performing systematic monopolistic activities is considered by antimonopoly authority from the moment of decision about consideration of materials within three months.

In case of lack of the documents necessary for confirmation of violations or lack of the conclusion of commission of experts, the head of antimonopoly authority or its deputy have the right to extend consideration term for 30 days. About prolongation of term in material the corresponding entry is made and the applicant is notified.

13. Following the results of consideration of material about separation (allocation) of business entity the antimonopoly authority makes the decision: - about separation (allocation) of business entity;

- about the termination of consideration of materials about separation (allocation) of business entity.

The decision of antimonopoly authority is subject to execution in time, specified in the decision which cannot be less than three months. The decision is carried to business entities within three days from the moment of acceptance for execution.

The decision of antimonopoly authority following the results of consideration of material about separation (allocation) of business entity can be appealed by interested persons in administrative (pre-judicial) procedure according to the legislation of the Kyrgyz Republic on bases of administrative activities and ministerial procedures.

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