Liability for Violation of Competition Legislation
Chapters 7 and 8 of the Law of the Republic of Uzbekistan “On Competition” form a unified legal mechanism regulating liability for violations of antimonopoly legislation and the procedure for their procedural review. Chapter 7 establishes the consequences and forms of liability for violations, while Chapter 8 regulates the procedures for initiation, consideration, enforcement, and appeal of cases. Together, they create an integrated system for protecting competition, ensuring a balance between the interests of the state, business, and consumers.
Any violation of competition entails:
- the obligation to eliminate the violation as instructed by the antimonopoly authority;
- compensation for damage to the affected entities or consumers;
- return of illegally obtained income;
- payment of fines.
In addition, persons whose rights have been violated may apply to the court to protect their interests, which ensures judicial control over the actions of both the state and business.
The law provides compensation not only for direct losses but also for lost profit if the damage was caused by unlawful actions or inaction of state bodies and officials. This increases the level of protection for businesses and citizens.
Grounds for Initiating Cases
Proceedings on violations may be initiated:
- based on inspections and monitoring conducted by the antimonopoly authority;
- upon applications from legal entities and individuals;
- based on submissions from state authorities.
Thus, the mechanism for initiating cases is open and accessible, which increases the likelihood of detecting violations.
Case Consideration
Cases may be suspended or postponed for objective reasons.
The outcome of consideration is either recognition of a violation or termination of the proceedings.
If a violation is identified, an order for elimination is issued, which is mandatory for execution.
Decision-Making
Following the review of the violation, the authorized body adopts one of the following decisions:
- recognition of the violation with a subsequent order for elimination;
- termination of proceedings (if the facts were not confirmed or the violations were voluntarily eliminated).
Orders are subject to mandatory execution, and ignoring them entails additional liability. Orders must be fulfilled within the established time frame. A subject may request an extension of the execution period, but for no more than three months. Control over execution is vested in the antimonopoly authority.
Appeals and Public Oversight
Decisions of the antimonopoly authority may be appealed in court or to a higher authority. Filing an appeal suspends the execution of the order, except in cases involving threats to life, public health, or emergency situations.
Public oversight plays an important role: public associations have the right to monitor compliance with competition law and protect consumer interests.
Financial Sanctions for Violations
Chapter 9 of the Law of the Republic of Uzbekistan “On Competition” is devoted to financial sanctions imposed for violations of antimonopoly legislation. It is a key tool for ensuring the inevitability of liability and serves as an effective deterrent against unfair market behavior. Sanctions are both punitive and preventive in nature: they not only punish violators but also encourage business entities to operate within the framework of fair competition.
|
Type of Violation |
Essence of Violation |
Amount of Financial Sanction |
Applied to |
|
Anticompetitive agreements and coordinated actions |
Conclusion of agreements or coordinated actions restricting competition (cartel, collusion). |
• For legal entities – 5% of revenue from sales of goods. • For associations of legal entities – 5% of the amount of membership fees. |
Business entities, associations of legal entities |
|
Abuse of dominant position or bargaining power |
Use of market power to set monopoly prices, impose conditions, restrict competitors’ access. |
5% of revenue in the relevant goods market. |
Entities holding a dominant position |
|
Economic concentration without consent |
Merger, acquisition, or purchase of company shares without antimonopoly authority approval. |
1,000 times the base calculation value (BCV). |
Legal entities – parties to the transaction |
|
Unfair competition |
Misleading consumers, discrediting competitors, copying packaging or style. |
2% of revenue in the relevant goods market. |
Business entities |
|
Violations in trading (tenders, auctions, exchanges) |
Collusion between participants, price manipulation, or manipulation of trading results. |
3% of the initial price of the trading item. |
Participants of trading |
|
Creation or reorganization of state enterprises without consent |
Creation, reorganization, or modification of activities of state enterprises without antimonopoly approval. |
100 times BCV. |
State authorities, enterprises with state participation |
|
Violation in providing information |
Failure to provide, distortion, or untimely submission of information to the antimonopoly authority. |
50 times BCV. |
Business entities, authorities, and organizations |
Additional Provisions
- Sanctions are calculated for the period of violation but not for more than the last three years.
- The fine amount is correlated with the economic scale of the subject (revenue, membership fees, transaction amount, etc.).
Tashkent city, Uzbekistan
