The Georgian National Competition Agency approved 3 concentrations. The issue concerned the purchase of 100% share of “Arttime” by “Roniko”, 100% share of “Pharmarea” by “Silk Road Engineering” and 100% share of “Legometal” by N/P Temur Bolkvadze.
Within the framework of the monitoring, it was determined that the undertakings implemented concentrations without notifying the Agency and without appropriate decision.
As a result, financial sanctions were applied to the purchasing undertakings, and they were instructed to submit a relevant statement to the Agency for confirmation of concentration. For non-submission of notification of a concentration, the undertakings were fined up to 32,000 GEL.
According to the analysis of the nonferrous and ferrous metal scrap market, the export volume in 2021 amounted to 271.7 million GEL, the number of participating entities was 46, the market concentration index (HHI) was 1,474, which is an average concentrated market indicator.
During the analysis of the accessories and luxury goods market, the Agency's assessment logic is based on the fact that the parties before the merger operated in different commodity markets and are not connected by a demand-supply chain, thus there is no need to consider the relevant market structure of each party. As a result of the implemented concentration, the level of concentration does not change in any of the relevant markets.
The volume of the agricultural machinery and equipment wholesale market in 2021 amounted to 169.3 million GEL, the number of participating entities - 134, the market concentration index (HHI) - 463.14, which is an indicator of a low-concentration market. The volume of import of agricultural machinery and equipment in 2021 amounted to 186.4 million GEL, the number of participating entities - 1175, the market concentration index (HHI) - 463.14, which is also an indicator of a low-concentration market.
As a result of the study of the received and processed materials, the Agency determined that the implemented concentrations, in accordance with Article 11 of the Law of Georgia on Competition, does not substantially restrict effective competition and are compatible with the competitive environment.
For information: Implementation of a concentration subject to prior mandatory notification is allowed when Agency makes the following decision on the compatibility of the planned concentration with the competitive environment. According to Law concentration is subject to notification to the Agency if the aggregate (total) annual turnover of its participants on the territory of Georgia, exceeds 20 million GEL and the annual turnover of at least two persons participating in the concentration exceeds 5 million GEL for the previous financial year. Imposing a fine does not release the person with the obligation to submit the notification on the concentration.
In the first quarter of 2023, 5311 concentrations have been implemented in Georgia. The Agency has approved 3 concentrations.
