COMMISSION FOR PROTECTION OF ECONOMIC COMPETITION FINES ALEX GRIG FOR UNFAIR COMPETITION

/ARKA/
May 19, 2010
YEREVAN

YEREVAN, May 19, /ARKA/. Armenia’s State Commission for Protection
of Economic Competition has ruled today to fine Alex Grig company in
the amount of 3 million Drams for unfair competition and the failure
to present data required by it in due time. The Commission started a
process against this company on May 7 after finding that it produced
and sold five brands of vodka that could confuse consumers.

Vahan Gspoyan, head of a Commission unit in charge of issues related
to unfair competition, said Alex Grig produced and sold vodkas that
resemble to a great degree vodkas produced by Ukraine. He said labeling
on one brand was entirely in Ukrainian.

The Commission has ruled also to fine the company in the amount of
500,000 Drams for providing incomplete information in regard to prices
of sugar that it imported and sold in Armenia in 2009.

The ruling related to vodkas was protested by Lernik Hovhanesian,
a company’s lawyer, who argued that the company would agree to the
rulings if they were prompted by complaints from companies owing
vodka brands.

He said the company will take the case to court because ‘the ruling
is not supported legally.’

Alex Grig is owned by a parliament member Samvel Alexanian. Last year
it was fined by the Commission in the amount of $3,000 for unfair
competition on the complain from Manukian and Partners company,
a distributor of several brands of Russian vodka in Armenia.