News of legislation in the sphere of antimonopoly regulation in Uzbekistan
Uzbekistan – September 2024
Amendments to antimonopoly legislative acts
On September 4, 2024, President of the Republic of Uzbekistan Shavkat Mirziyoyev signed the Law (version in Russian is available here) No. ZRU-954 “On amendments and additions to certain legislative acts of the Republic of Uzbekistan in connection with further improvement of the activities of the Committee for Development of Competition and Protection of Consumer Rights of the Republic of Uzbekistan” (hereinafter – the “Law 954”).
The Law 954 entered into force on September 5, 2024. The following is an overview of the significant innovations outlined in the Law 954.
Classification of a business entity as a natural monopoly depending on its core activity
The Law 954 supplements the definition of the term “the subject of natural monopoly”, which is set in the Law of the Republic of Uzbekistan “On Competition” No. ZRU-850 dated 03.07.2023 (hereinafter - the “Competition Law”). The supplemented definition of the term “subject of natural monopoly” reads as follows: “subject of natural monopoly - an economic entity or a group of persons engaged in the production and (or) sale of goods under the conditions of natural monopoly as the main type of activity”.
Thus, from now on, only those business entities that produce or sell goods under the conditions of natural monopoly as their main type of activity are subjects of natural monopoly.
It should be noted that according to the rules for determining the main type of activity of the Uzbekistan national classifier of economic activities (NKED), an activity will be considered the main type of activity if its share in the total volume of added value is the largest.
Coordination with the Committee for the Development of Competition and Consumer Protection of the Republic of Uzbekistan (hereinafter - “the Committee”) of drafts of the legislative acts
The Law 954 amends the Law of the Republic of Uzbekistan “On Regulatory Legal Acts” No. ZRU-682 of April 20, 2021, so that the draft of legislative acts on competition in the commodity and financial markets, as well as those providing for state aid, must be coordinated with the Committee.
Softening the liability for violation of antimonopoly legislation
The Law 954 amends the Competition Law, so that an economic entity that has committed a first-time violation of competition law with a low economic impact is not subject to financial sanctions but is only issued a warning not to commit such an offense again.
The cases of violation of competition legislation with low economic impact are to be determined by the Cabinet of Ministers of the Republic of Uzbekistan.
Contact details:
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Zafar Vakhidov |
Partner, Vakhidov & Partners |
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Uzbekistan / Kazakhstan |
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ZV@vakhidovlaw.com | |
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Shohruh Alimjanuly |
Associate, Vakhidov & Partners |
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Uzbekistan / Kazakhstan |
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