ORDER OF THE GOVERNMENT OF THE REPUBLIC OF MOLDOVA

of August 17, 1995 No. 582

On regulation of monopolies in the Republic of Moldova

For the purpose of determination of the principles and methods of state regulation of monopolies the Government of the Republic of Moldova DECIDES:

1. Approve:

Regulations on regulation of monopolies according to the appendix N 1;

The list of monopolies of the state and bodies of public management, representatives them to regulate, according to the appendix N 2;

The list of natural monopolies and bodies of public management, representatives them to regulate, according to the appendix N 3.

2. To bodies of public management, authorized to regulate the monopolies specified in the appendices N 2 and 3, in a month:

allocate the divisions responsible for execution of functions of regulation and supervision of activities of business entities of monopolies in the internal structures and to determine lists of business entities of monopolies which activities in the field are exposed to licensing;

develop and apply measures and methodological regulations of supervision and regulation of business entities of monopolies;

organize licensing of activities of business entities in the field of monopolies according to the Regulations on procedure for issue of licenses for some types of activity in the Republic of Moldova approved by the Order of the Government of the Republic of Moldova N 581 of August 17, 1995. "On regulation of separate types of activity in the Republic of Moldova".

3. To assign functions of control over the implementation of this resolution to the Ministry of Economics.

Appendix № 1

to the Order of the Government of the Republic of Moldova of August 17, 1995 No. 582

Regulations on regulation of monopolies

I. General provisions

The regulations on regulation of monopolies (further - the Provision) establish and determine bases of state regulation of activities of subjects of monopolies of the state and natural monopolies in national economy, that

safety of citizens and society from uncontrollable production, realization or acquisition of weapon, explosives, drugs, alcohol, other goods and services, and also from counterfeit of bank notes, securities is most fully provided with monopoly of the state for their production and distribution;

transformation of state-monopoly structure of the national economy which developed in the conditions of command administrative system, and immediate elimination of monopolies can lead to sharp and considerable output gap and decrease in economic efficiency;

production, realization or acquisition of certain group of goods and rendering services in the conditions of natural monopoly for the natural, technology and economic reasons has more outstanding economic performance, and the competition in the field of action of natural monopoly becomes wasteful and can harm interests of the national economy and society;

the state shall eliminate for the benefit of society monopolies from the national economy or if their immediate elimination is impossible or it is inexpedient, to regulate their activities.

This Provision establishes the main directions and control methods and regulations of activities of subjects of monopolies of the state and natural monopolies.

Object of this provision are the relations arising in the domestic goods market in the field of monopolies of the state and natural monopolies in which bodies of public management, business entities and consumers participate.

This Provision does not extend to exclusive use by business entities of trademarks, trademarks and other forms of industrial property.

The provision does not govern also the relations and the sole rights resulting from legal protection of inventions, patents and intellectual property.

II. Determination of the basic concepts

For the purposes of this provision the following concepts and their determinations are accepted:

monopoly of the state - situation in case of which the limited number of business entities is allocated with bodies of public management of exclusive right or exclusive rights on conducting economic activity in any sphere of production, transportation, realization, purchase of goods (services).

The fields of activity providing to relevant organs of public management accomplishment of the functions connected with defense and safety of the state, and also production and realization of specific types of goods (services) belong to monopoly of the state.

Natural monopoly - situation in case of which production, transportation, realization, purchase of goods, groups of interchangeable goods, and also rendering separate types of service owing to the natural economic or technology reasons are under direct and indirect control of one or several business entities.

In spheres of natural monopoly along with the state business entities can perform activities and non-state business entities.

Subjects of monopolies are the business entities performing activities in areas on which monopolies are established.

III. Methods of regulation of monopolies

The government pursues policy on supervision and regulation of activities of subjects of monopolies of the state and natural monopolies through the central and local authorities of public management.

Local authorities of public management can establish in the territory subordinated to them special methods of regulation of activities of subjects of monopolies of the state and natural monopolies in the field of water supply and municipal services, territorial systems power - warm and gas supply.

For the purpose of carrying out effective state policy to subjects of monopolies bodies of public management, authorized to regulate their activities having the right to apply the following common and ad hoc methods:

the choice and realization of priorities of development of productions on the basis of general social and economic and structural policy;

development and approval of special state and industry programs of demonopolization of economy and development of the competition;

development of recommendations about creation of the companies of non-state patterns of ownership in the types of activity adjoining area of monopolies;

consideration of the facts of violations by the managing subjects monopolists of the antitrust law;

control of observance of standards of safety of works;

the state supervision on metrology;

state supervision of observance of requirements to the technical regulating documentation;

control of issue of securities;

establishment of control over the regulated business entity performing activities in the field of the above-stated monopolies through acquisition of controlling stock;

regulation (preserving or increase) of production volumes, realization or purchase of goods (services);

determination of production volumes (services) for needs of the state;

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