ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of July 7, 2015 No. 461

About approval of the Procedure for carrying out the analysis of competitive situation in the goods market of the Kyrgyz Republic

According to article 4 of the Law of the Kyrgyz Republic "About the competition" the Government of the Kyrgyz Republic decides:

1. Approve the Procedure for carrying out the analysis of competitive situation in the goods market of the Kyrgyz Republic according to appendix.

2. This resolution is subject to official publication and becomes effective from the date of entry into force of the Treaty of Accession of the Kyrgyz Republic to the Agreement on the Eurasian Economic Union of May 29, 2014.

Appendix

Approved by the Order of the Government of the Kyrgyz Republic of July 7, 2015, No. 461

Procedure for carrying out the analysis of competitive situation in the goods market of the Kyrgyz Republic

1. General provisions

1. Procedure for carrying out the analysis of competitive situation in the goods market of the Kyrgyz Republic (further - the Procedure) are used by state bodies for carrying out the analysis of competitive situation in the goods market (further - the market) and identifications of cases of non-admission, restriction or elimination of the competition, including:

1) in case of establishment of dominant position of business entity (group of persons);

2) when forming and maintaining the state register of the business entities holding dominant position in the market;

3) when carrying out the analysis of regulating impact on the competition of the regulatory legal acts regulating business activity according to the Law of the Kyrgyz Republic "About optimization of the regulatory legal base of regulation of business activity".

2. Holding procedure of establishment of dominant position of business entity is not required if the business entity performs production (realization) of goods in the conditions of natural monopoly and the state monopoly.

3. The analysis of competitive situation on commodity market (works, services) is carried out in the following sequence:

1) determination of time frame of research of the market;

2) determination of product borders of the market;

3) determination of geographical boundaries of the market;

4) determination of structure of the business entities acting in the market (including buyers and sellers, if necessary);

5) calculation of market size and share of business entities in the market;

6) determination of quantitative indices;

7) determination of qualitative indexes;

8) determination of market force of business entity in the market;

9) assessment of condition of competitive environment in the market;

10) creation of the analytical report (conclusions and offers).

In each case the procedure of carrying out the analysis can change, the omission of one or several stages depending on specifics of the market is possible.

4. In this Procedure the concepts determined by article 3 of the Law of the Kyrgyz Republic "About the competition" and article 3 of the Law of the Kyrgyz Republic "About natural monopolies in the Kyrgyz Republic" and also the following concepts are used:

entrance barriers on the market - the circumstances interfering opportunity to new business entities on equal terms to compete with the business entities who are already acting in the market;

geographical boundaries of the market - the territory in which buyers acquire or have economic, technical or other capability to acquire goods and have no such opportunity beyond its limits;

amount of commodity resources of the market (market size) - the total amount of realization (delivery) of goods or rendering financial service in geographical boundaries of the market to the allocated group of buyers in cost and (or) natural indicators;

product borders of the market - group (set) of interchangeable goods;

sellers (suppliers) of goods are the business entities selling products of own activities, and also the trade and intermediary organizations rendering services in promotion of goods to the consumer and the financial institutions rendering financial services (except for banking services);

buyers of goods are consumers of end products, including wholesale, small wholesale and retail resellers, the business entities acquiring goods for productive consumption and/or the subsequent realization and also consumers of financial services.

5. In the analysis of the competition in the market as sources of initial information are used:

- the data obtained from business entities;

- information obtained from bodies of statistics, tax, customs and other state bodies, local government bodies about types of activity of business entities (trade, intermediary, industrial, etc.);

- results of economic and merchandising examinations, the conclusions of the specialized organizations, and also certain specialists and experts confirming or denying interchangeability of goods when forming commodity groups;

- data of independent information centers and services;

- data of associations on consumer protection and other public associations and associations, including other states;

- addresses and (or) claims of physical persons and legal entities in antimonopoly authority;

- information obtained from mass media;

- data of own researches of antimonopoly authority or antimonopoly authorities of other states;

- data of marketing, social researches, selective polls and questioning of business entities, citizens, public organizations;

- national standards, specifications;

- data of the competitive situation researches which are earlier conducted by antimonopoly authority in the corresponding market.

2. Determination of time frame of research of the market

6. The time frame of research of the market is determined depending on research purpose according to Item of 1 this Procedure, features of the market and availability of information.

If buyers do not replace and are not ready to replace in consumption the goods acquired during one period of time, the same goods acquired during other period of time, then in case of the choice of time frame the characteristics of the market causing this choice are considered, including:

1) seasonality of deliveries of goods within year;

2) stability of deliveries of goods within year;

3) the periods of the maximum and minimum demand (including short-term), ratio of number of buyers during these periods;

4) possibility of establishment by sellers of the different prices during the different temporary periods;

5) terms of contracts;

6) time of emergence of goods in the market.

7. All characteristics of the market are determined within one established time frame.

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