IT IS ENVISAGED TO USE STRICTER PUNITIVE ADMINISTRATIVE MEASURES FOR UNFAIR COMPETITION

Noyan Tapan
Dec 7, 2007

YEREVAN, DECEMBER 7, NOYAN TAPAN. A bill envisaging amendments in
the Law on Protection of Economic Competition was put into official
circulation in the RA National Assembly. Gagik Minasian, the chairman
of the RA National Assembly Standing Committee on Financial, Credit and
Budgetary Issues, a PRA member, said at the December 7 briefing that
the purpose of this legislative initiative of the RPA faction is to
use stricter punitive administrative measures for unfair competition.

Under the legislation on economic competition, a dominating position
of an economic entity in the commodity market is not considered a
violation of the legislation. Administrative responsibility is imposed
on companies, concerning which the RA State Commission on Protection
of Economic Competition makes decisions about abusing their dominating
position and manifesting unfair competition. In such cases the company
is fined in the amount of 2% of the previous year’s turnover.

According to G. Minasian, the proposed amendments particularly envisage
that in addition to paying the indicated fine, the economic entity
will have to transfer the additional profit received as a result of
unfair competition actions to the state budget.

In all likelihood the bill will be discussed at the NA special session
to be convened soon.