Implementation of the antitrust compliance system 2023 

In accordance with the Resolution of the President of the Republic of Uzbekistan No. PF-6019 dated July 6, 2020 and the Cabinet of Ministers No. 114 dated March 2, 2021, the introduction of an antimonopoly compliance system in the sphere of activities of government bodies, local executive bodies, monopolistic enterprises and corporate customers was established.

I. Work done

Today 196 entities (100 during 2023), including 68 natural monopolies, 59 business entities occupying a dominant position in the commodity or financial market, 35 local executive authorities, 15 government bodies, 19 enterprises with participation states have fully implemented the antimonopoly compliance system into their activities.

During the reporting period, 7 educational and practical classes were conducted on the topic “Effective implementation of the antitrust compliance system – a guarantee of compliance with competition law” in order to explain the content and essence of competition law requirements for employees of organizations responsible for the functioning of the antitrust compliance system and increase their knowledge in this area. More than 300 authorized persons and employees of enterprises responsible for the activities of the antimonopoly compliance system took part in the seminars.

Also in accordance with the Decree of the President of the Republic of Uzbekistan dated July 6, 2023 No. UP-108 “On measures for the effective organization of public administration in the field of development of competition and protection of consumer rights within the framework of administrative reforms” in order to clarify the content and significance of the new edition of the Law “On competition” and other legislative documents, the Competition Committee and its territorial departments held training seminars in all regions of the republic on the topic “New competition legislation – modern legal framework for the protection of competition.”

On average, 50-60 participants took part in each event, and in total in the republic this figure was more than 800 people.

In addition, in accordance with this Decree, by Order of the Committee dated August 8, 2023 No. 111-ICH, within the framework of the project “We are listening!” a schedule of meetings for 2023-2024 with entrepreneurs and foreign investors working in various sectors of the economy has been approved.

In order to inform business entities about upcoming meetings, as well as to create the opportunity to send an electronic application for participation, a page “We are listening!” has been created on the official website of the Committee.

According to the schedule, during August-October 2023, open meetings were organized with about 300 entrepreneurs and foreign investors working in four areas, in particular, platform services of digital and financial technologies (fintech), production of construction materials, advertising and pharmaceutical industries, their problems were studied and suggestions listened to.

На основании доложенных проблем, предложений и инициатив был определен план мероприятий по разработке предложений и их реализации в целях устранения факторов, сдерживающих деятельность предпринимателей.

Обеспечено широкое освещение проведенных встреч в средствах массовой информации и социальных сетях.

Based on the reported problems, proposals and initiatives, an action plan was determined for the development of proposals and their implementation in order to eliminate the factors constraining the activities of entrepreneurs.

Wide coverage of the meetings was ensured in the media and social networks.

II. Results

After the implementation of the antimonopoly compliance system in the activities of enterprises, organized on the basis of the Committee’s recommendations, produces positive results. For example,

  1. More than 100 tender documents were reviewed by authorized persons responsible for antimonopoly activities at Uztransgaz JSC, Navoi Mining and Metallurgical Plant JSC, Maksam-Chirchik JSC and Asakabank JSC. When studying the state of ensuring competition at tenders, it was found that in 38 cases there were actions agreed upon between the participants. Violations of the law were prevented by introducing appropriate proposals to cancel and reorganize these sales.
  2. During 2022, in the process of public procurement carried out by the authorized person of Uzmetkombinat JSC, a total of 10 cases of mutual affiliation of participants were identified and cases of vertical agreement were excluded.
  3. The process of actions related to the organization of business entities with state participation of Uzmetkombinat JSC, Coscom LLC and inspections for quality control of road construction must be carried out in accordance with competition law after first obtaining the approval of the antimonopoly authority. These cases were reviewed by the antimonopoly authority, 2 transactions were approved, and 1 was rejected due to fairly developed competition in the relevant market.
  4. During 2022, the Compliance Service of Navoi Mining and Metallurgical Plant JSC developed 27 proposals and 9 of them were implemented in order to identify norms that limit competition and eliminate deficiencies, as well as introduce changes to regulatory and internal documents.
  5. On the official websites of JSC “Maksam-Chirchik”, JSC “Uztransgaz”, JSC “Uzmetkombinat”, JSC “Bektemir-SpirtExperimental Factory” a page “Report restrictions on competition and cartel agreements” has been created.

III. Violations of the law

Despite the introduction of the antimonopoly compliance system, during 2022 a number of articles of the Laws of the Republic of Uzbekistan “On Competition” and “On Natural Monopolies” and the requirements of the Decree of the President of the Republic of Uzbekistan UP-6019 dated July 6, 2020 and the Resolution of the Cabinet of Ministers Republic of Uzbekistan No. 238 dated October 28, 2010 were violated by the following government bodies and business entities:

– The Ministry of Construction, “O‘quv ta’lim ta’minot” of the Ministry of Public Education, JSC Uzbekneftegaz and National Metrological Institute of Uzbekistan committed violations – Article 7 (monopoly inflated price of goods), Article 10 (abuse of dominant position) of the Law “On Competition”), requirements Article 12 (Prohibition of documents and actions of government bodies, local self-government bodies and associations of legal entities that restrict competition), Article 14 (Antimonopoly requirements for competitions);

– Uzbekistan Airports JSC – the requirements of Article 11 of the Law “On Competition” (Prohibition of concerted actions and agreements of business entities that limit competition) and Article 16 of the Law “On Natural Monopolies” (Restriction of the activities of natural monopolies);

– Khokimiyats of Andijan and Kashkadarya regions – requirements of Article 12 of the Law “On Competition” (Prohibition on documents and actions of government bodies, local government bodies and associations of legal entities that restrict competition);

– NAVOIYAZOT JSC and Uzbekistan Airports JSC – subparagraph “d” of paragraph 2 of the Decree of the President of the Republic of Uzbekistan dated July 6, 2020 No. UP-6019;

– Khududgaztaminot JSC and O‘zbekiston Milliy Elektro Tarmoqlari JSC – the requirements of Article 15 (Responsibilities of natural monopolies) and Article 16 (Restriction of the activities of natural monopolies) of the Law “On Natural Monopolies”;

– O‘zbekiston Milliy Elektro Tarmoqlari JSC and  “O‘quv ta’lim ta’minot” of the Ministry of Public Education – 36, paragraph five of the Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 238 dated October 28, 2010

The antimonopoly authority has initiated cases regarding these violations.