GROWTH IN PRICES OF SOME GOODS REGISTERED IN ARMENIA IN RECENT DAYS

Noyan Tapan
Feb 27, 2008

YEREVAN, FEBRUARY 27, NOYAN TAPAN. The monitoring unit of the RA
State Commission on Protection of Economic Competition responded to
the growth in prices of some goods in recent days. For that reason,
at the February 27 sitting the commission warned economic entities to
refrain from raising prices unreasonably by concluding anticompetitive
agreements or abusing their dominating position. Besides, the
commission decided the make monitoring most intensive by expanding
the list of essential goods subject to monitoring to 20 and increasing
the monitoring frequency to a monitoring every other day.

The commission discussed the application of Jermuk Mother Plant
company, according to which the mineral water producing Rosal and Manuk
companies violate the law by using bottles, which are trade marks
registered under the name of diokontuk at the intellectual property
agency, for the sale of their production. A fine of 500 thousand drams
(about 1,600 USD) was imposed on these companies.

Yerevan Water company had applied to the commission, saying that by
a notice of January 1, 2008 Nairit plant informed the company that
it fixed the sale price of 1 ton of liquid chlorine at 684 thousand
drams instead of the previous 350 thousand drams without presenting
any economic substantiation.

Yerevan Water indicated that Nairit is the only liquid chlorine
producer in Armenia, has a monopoly position so the plant’s action
can be considered as abuse of its dominating position. During the
proceedings initiated by the commission, Nairit informed the commission
that it complied with the request of Yerevan Water and left the sale
price of 1 ton of liquid chlorine unchanged.