Does the Antimonopoly Committee of Ukraine suspect you of committing anti-competitive concerted actions?

Does the Antimonopoly Committee of Ukraine suspect you of committing anti-competitive concerted actions?

There are many types of various offenses that distort economic competition, but one of the most common types of anti-competitive concerted actions of business entities.

In accordance with Article 5 of the Law of Ukraine “On the Protection of Economic Competition”, by concerted actions, current legislation means that economic entities conclude agreements in any form, make decisions in any form by associations, create a new enterprise or association, the purpose or effect of which is to coordinate competitive behavior between business entities that created such business entity, as well as any other coordinated competitive behavior (activities effectiveness or inaction) of business entities.

Anti-competitive concerted actions can be committed by any business entities, regardless of the size of their market share and the presence of signs of market power.

This offense is always a collective one and is carried out by at least two business entities operating in the same market.

Thus, anticompetitive concerted actions, in accordance with paragraph 1 of Article 6 of the Law of Ukraine “On the Protection of Economic Competition”, are concerted actions that have led or may lead to the prevention, elimination or restriction of economic competition.

Clause 2 of Article 6 of the Law of Ukraine “On Protection of Economic Competition” clearly states which coordinated actions are recognized as anti-competitive, this can be:

1) the establishment of prices or other conditions for the purchase or sale of goods;

2) restriction of production, product markets, technical and technological development, investment or the establishment of control over them;

3) the distribution of markets or sources of supply according to a territorial principle, a range of goods, the volume of their sale or purchase, by a circle of sellers, buyers or consumers, or according to other signs;

4) distortion of the results of bidding, auctions, contests, tenders;

5) removal from the market or restriction of market access (exit from the market) of other business entities, buyers, sellers;

6) the application of different conditions to equivalent agreements with other business entities, which puts them at a disadvantage in the competition;

7) the conclusion of agreements subject to the adoption by other business entities of additional obligations that, by their content or according to trade and other fair customs in business, do not concern the subject matter of these agreements;

8) a significant limitation of the competitiveness of other business entities in the market without objectively justified reasons.

Anticompetitive concerted actions are also considered to be carried out by business entities of similar actions (inaction) on the commodity market, which have led or may lead to elimination or restriction of competition if an analysis of the situation on the commodity market refutes the existence of objective reasons for committing such actions (inaction).

We also draw your attention to the fact that in order to qualify the actions of a business entity as anticompetitive and coordinated, it is not necessary to ascertain the occurrence of consequences in the form of preventing, eliminating or restricting competition, it would be sufficient to establish the fact of the actions defined by law as anticompetitive actions.

What can we expect business entities that have coordinated their actions and violated the norms of current legislation?

Such business entities will be brought to justice by the Antimonopoly Committee of Ukraine. It is this agency that is precisely responsible for ensuring that entrepreneurs and enterprises adhere to the norms of the law on the protection of economic competition and do not take anti-competitive concerted actions.

The law provides for penalties of this type of violation in the amount of up to 10% of the income (revenue) of a business entity from the sale of products (goods, works, services) for the last reporting year preceding the year in which the fine is imposed.

At the same time, the law provides for a norm that can help a business entity to avoid such a fine or significantly reduce it (Linancy Loyalty Program), namely, in accordance with paragraph 5 of Article 6 of the Law of Ukraine “On Protection of Economic Competition”, a person who committed anticompetitive concerted actions, but before the other participants in these actions voluntarily reported this to the Antimonopoly Committee of Ukraine or its territorial office and provided information that has significant th value for making a decision on the case, be released from responsibility for the commission of anticompetitive concerted actions.

The legislation also provides for the submission of an application for granting permission for concerted actions of business entities, but they imply a fee for consideration and clear requirements for its content.

Therefore, if the Antimonopoly Committee of Ukraine suspects you of such a violation, you can consult our highly qualified specialists who will help you in resolving your issue.

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