50 Questions on the Competition Law of Uzbekistan

1. What is the main objective of the Law “On Competition”?

Answer: The purpose of the Law is to regulate legal relations in the field of competition by preventing, identifying, and suppressing actions that lead or may lead to restriction of competition, abuse of market power, and infringement of consumer rights in both commodity and financial markets.

2. What principles form the basis of competition legislation?

Answer: The key principles include:

• fair competition;
• legality;
• priority of consumers’ rights and legitimate interests;
• transparency;
• equality of market participants.

3. Does the Law apply to actions committed outside Uzbekistan?

Answer: Yes. The Law also applies to actions committed outside the Republic of Uzbekistan if such actions have or may have a negative impact on competition or consumer rights in the markets of Uzbekistan.

4. Which relations are expressly excluded from the scope of the Law?

Answer: The Law does not apply to relations connected with the exercise of exclusive rights to intellectual property objects, unless otherwise expressly provided by antimonopoly legislation.

5. How is “competition” defined under the Law?

Answer: Competition is the rivalry of business entities whereby their independent actions exclude the possibility of unilateral influence on the general conditions of circulation of goods in the market.

6. What is meant by “economic concentration”?

Answer: Economic concentration refers to transactions and other actions that lead to the dominance of one business entity or a group of persons and affect the state of competition in the market.

7. Who is recognized as a business entity under the Law?

Answer: A business entity is any legal entity or individual entrepreneur engaged in the production, acquisition, or sale of goods, including enterprises with state participation.

8. What is a natural monopoly from the perspective of the Law?

Answer: It is a market condition in which the creation of a competitive environment is impossible or economically impractical due to technological features of production or service provision.

9. Who regulates prices of natural monopoly entities?

Answer: Price (tariff) regulation is carried out by an authorized body designated by the Cabinet of Ministers of the Republic of Uzbekistan, rather than by the antimonopoly authority.

10. What key obligations are imposed on natural monopoly entities?

Answer: The main obligations include:

• ensuring equal access conditions for consumers;
• maintaining separate cost accounting;
• providing reliable information for tariff regulation;
• submitting reports to the antimonopoly authority.

11. Is a natural monopoly entity entitled to reduce tariffs?

Answer: Yes, but only simultaneously for all consumers and subject to mandatory notification of the antimonopoly authority.

12. What constitutes a dominant position in the market?

Answer: A dominant position is the ability of a business entity to exert decisive influence on the market, including cases of:

• absence of competitors;
• market share of 40% or more;
• status of a natural monopoly entity;
• possession of exclusive rights.

13. Can a group of persons be recognized as dominant?

Answer: Yes. The Law expressly provides that a group of persons is considered a single market entity if there is a common economic interest and control criteria are met.

14. What is meant by a monopolistically high price?

Answer: It is a price that significantly exceeds economically justified costs or is aimed at extracting additional profit through deterioration of product quality.

15. Which actions constitute abuse of a dominant position?

Answer: These include:

• imposition of unfavorable contractual terms;
• establishment of discriminatory conditions;
• creation of artificial shortages;
• unjustified refusal to conclude a contract;
• obstruction of market access.

16. What is an anti-competitive agreement?

Answer: It is an agreement between two or more entities (written or oral) that leads or may lead to restriction of competition or harm to consumer interests.

17. What is the difference between an anti-competitive agreement and concerted actions?

Answer: Concerted actions are carried out without a formal agreement but with mutual awareness and coordinated behavior of market participants.

18. Is “leniency” available for a cartel participant?

Answer: Yes. A person who is the first to voluntarily report a cartel to the antimonopoly authority is exempt from administrative and financial liability.

19. Which forms of unfair competition are expressly prohibited by the Law?

Answer: The following are prohibited:

• discrediting a competitor;
• improper comparison;
• misleading consumers;
• unlawful use of commercial secrets;
• blocking a competitor’s access to the market.

20. What is considered state aid?

Answer: State aid includes any forms of support, such as tax and customs benefits, subsidies, grants, state guarantees, preferential loans, and exclusive rights.

21. Is individual state aid permitted?

Answer: No. Individual aid that distorts the competitive environment is prohibited, except in cases provided for by decisions of the President of the Republic of Uzbekistan.

22. Is antimonopoly assessment of state preferences mandatory?

Answer: Yes. Draft acts on granting state aid are subject to mandatory competition impact assessment by the antimonopoly authority.

23. In which sectors is the establishment of enterprises with state participation prohibited?

Answer: Such enterprises are prohibited in sectors with developed competition where five or more private business entities operate.

24. When is prior consent of the antimonopoly authority required?

Answer: Consent is required in cases of:

• establishment or reorganization of enterprises with state participation;
• change of business activity type;
• acquisition of shares or equity interests.

25. What legal consequences arise from violation of Chapter 4 requirements?

Answer: Possible consequences include:

• liquidation of the enterprise;
• invalidation of transactions;
• change of business activity type by order of the antimonopoly authority or a court.

26. What is meant by state control over economic concentration?

Answer: State control over economic concentration is the prior approval by the antimonopoly authority of transactions and actions that may result in the emergence or strengthening of a dominant position and restriction of competition.

27. In which cases is prior consent for economic concentration required?

Answer: Consent is required in cases of:

• merger or acquisition of business entities;
• acquisition of more than 25% of voting shares of a joint-stock company;
• acquisition of more than one-third of the charter capital of an LLC or additional liability company when established asset or revenue thresholds are met.

28. What financial asset or revenue thresholds are subject to control?

Answer: Control applies if:

• assets or revenue of one participant exceed 250,000 Base Calculation Units (BCU), or
• aggregate assets or revenue of participants exceed 500,000 BCU.

29. Which transactions are not subject to economic concentration control?

Answer: Control does not apply, in particular, to:

• establishment of a business entity by its founders;
• acquisition of own shares;
• reorganization without change of charter capital;
• acquisition of shares by investment intermediaries for resale.

30. May the antimonopoly authority refuse consent to concentration?

Answer: Yes, if the concentration leads or may lead to a dominant position and restriction of competition, or if false information is identified in the submitted documents.

31. When may concentration be permitted despite dominance risks?

Answer: If applicants prove that the transaction brings tangible benefits to consumers, the antimonopoly authority may grant consent.

32. What is compulsory division of a business entity?

Answer: It is an extreme antimonopoly enforcement measure applied by a court at the initiative of the authority when other measures are ineffective and organizational and economic separability conditions exist.

33. Which actions at tenders are considered anti-competitive?

Answer: These include:

• coordination among tender participants;
• price manipulation;
• creation of privileged conditions;
• inclusion of discriminatory requirements;
• pricing algorithms that distort competition.

34. Which body is the antimonopoly authority in Uzbekistan?

Answer: The Committee for the Development of Competition and Consumer Protection of the Republic of Uzbekistan.

35. What key powers does the antimonopoly authority have?

Answer: It:

• identifies competition violations;
• initiates and considers cases;
• issues binding orders;
• imposes fines;
• applies to courts;
• controls economic concentration and state aid.

36. May the antimonopoly authority participate in court proceedings?

Answer: Yes. It is entitled to participate in cases related to competition violations and to initiate court claims.

37. Does the antimonopoly authority have the right to obtain information from business entities?

Answer: Yes. It may obtain documents, information, and data free of charge, including real-time access to electronic databases.

38. What consequences arise from violation of competition legislation?

Answer: Consequences include:

• mandatory compliance with orders;
• compensation for damages;
• recovery of unjustified income;
• payment of fines.

39. Who has the right to claim compensation for damages caused by anti-competitive actions?

Answer: Any person whose rights and legitimate interests have been violated has the right to file a claim in court for compensation.

40. Is damage caused by unlawful acts of state authorities compensated?

Answer: Yes. Damage caused by anti-competitive acts or actions of state authorities is subject to compensation in accordance with the law.

41. Who initiates and considers cases on competition violations?

Answer: Exclusively the antimonopoly authority within its competence.

42. Which persons participate in a competition violation case?

Answer: Participants include:

• the antimonopoly authority;
• the person against whom the case is initiated;
• interested persons, witnesses, experts, and specialists.

43. What procedural rights do case participants have?

Answer: They have the right to:

• provide explanations;
• submit evidence;
• file motions;
• appeal decisions and orders.

44. What decisions may the antimonopoly authority adopt in a case?

Answer: It adopts a decision:

• establishing a violation and applying measures; or
• terminating the proceedings.

45. When is case proceedings subject to termination?

Answer: In cases of absence of violation, voluntary elimination of consequences, liquidation of the entity, or existence of a court decision on the matter.

46. What is an order of the antimonopoly authority?

Answer: It is a binding requirement to eliminate a violation and restore the competitive environment.

47. Is deferral of order execution possible?

Answer: Yes. The execution period may be extended for up to three months for valid reasons.

48. How are decisions and orders of the antimonopoly authority appealed?

Answer: They may be appealed:

• in court;
• to a higher authority or official.

49. Does an appeal suspend execution of an order?

Answer: Yes, an appeal suspends execution, except in cases involving threats to life, health, or emergency situations.

50. What types of financial sanctions are provided by the Law?

Answer: The Law provides for fines:

• up to 5% of revenue for cartels and abuse of dominance;
• up to 2% of revenue for unfair competition;
• special fines for violations related to tenders, concentration, and state participation.