The Memorandum of Understanding between the USAID Human and Institutional Capacity Development Project (HICD) and the Competition Agency was signed on March 25, 2021, under which the Agency is working on a long-term organizational strategy, action plan, and communication strategy.
The aim of the current project is for the Agency to effectively fulfill its expanded mandate and strengthen its organizational activities within the scope of its authority. In particular, on November 4, 2020, the main part of the amendments to the Georgian Law on Competition entered into force, which fully complies with the best European practice, the requirements of the DCFTA, and reflects the basic principles of EU competition law. In 2020, the Parliament of Georgia made a decision and the staff of the Public Procurement Dispute Resolution Council started operating under the structure of the Agency. Also, on January 1, 2021, the anti-dumping legislation came into force and the relevant department started functioning in the Agency.
The project is supported by the USAID Human and Institutional Capacity Development Project (HICD), which aims to promote the human and institutional capacity development of key strategic partner institutions in Georgia.
The activities of HICD are envisaged by the consulting company GEC, which will develop a long-term organizational development strategy for the Georgian National Competition Agency.
Accordingly, the consulting company GEC works with the Competition Agency and other stakeholders in the following main areas:
• Analysis of legislation, by-laws, and international agreements related to the Agency’s activities;
• Development of the mission, goals, and functions of the Agency;
• Conducting meetings-seminars (taking into account the pandemic factor, mainly online) on the methodology of preparing a strategic development plan;
• Research-analysis of the strengths and weaknesses of the organization;
• Individual and group meetings with Agency staff and other stakeholders to learn about their priorities and expectations.
Aim and outcome of the project - In the format of legislative changes adopted in 2020, develop a 3-year strategic development plan of the National Competition Agency and a 1-year action plan for its implementation. Strengthen the efficiency of the institutional and proper work of the Competition Agency.
Seminars on competition legislation and its enforcement issues were held for the representatives of the local self-government. The seminars, initiated by the Competition Agency of Georgia, were funded by the German Economic Cooperation Organization (GIZ) and organized by the Academy of the Ministry of Finance of Georgia.
In the frames of the meeting following topics were discussed: acting national competition legislation, the purpose of the law, possible infringements, response mechanisms, general procedures of investigation. The main focus was made on the infringement of competition law by the administrative bodies (including in the process of public procurement), as well as the Agency’s relevant case-law and court interpretation. Besides, participants were introduced to the state aid, its characteristics, types of the state aid which has to be notified to the Competition Agency of Georgia, and review procedure. The training course was aimed at informing representatives of the local self-government about the competition law topic, which is very important and actual for the administrative bodies during implementing various activities and taking decisions.
The training cycle was held in 2 phases, spring and Autumn, 2019: In the frames of the first phase, 14 training courses were held in 6 regions of Georgia, attended by 420 participants. In the frames of the second phase, 12 training courses were held in 5 additional regions of Georgia, attended by 360 participants. Participants were awarded certificates.
The EU funded project “Support to the Georgian Competition Agency” was launched in January 2017 and ended in January 2020. The project was implemented by a Consortium led by B&S Europe.
With the overall objective to enhance the law enforcement capacity and professional skills of the Competition Agency of Georgia, the Project aimed to support institutional capacity building, improve the legal framework and competition culture in the country.
In the Project framework, EU experts, among them officials from the Lithuanian Competition Council, a member of the Consortium, worked alongside local experts to support the Competition Agency of Georgia and the other stakeholders (line ministries, sector regulators, public and private sector) to strengthen competition law enforcement according to EU best practice.
The purpose of the Project was reflected in its three components
Strengthening legal, economic and technical capacity of the Competition Agency of Georgia
Improving cooperation between the Competition Agency and sector regulators
Promoting a competition culture in Georgia
ENHANCEMENT OF LEGAL AND INSTITUTIONAL FRAMEWORK
• Project experts carried out a gap analysis of the Georgian competition legislation and prepared documents with detailed recommendations for improvement of legislative framework in line with the European best practices;
• Recommendations were prepared for strengthening institutional setting of the Agency;
• Glossary of Competition Terms and several Guidelines on various issues were prepared;
• In June 2019, legal amendments to the law of Georgia on Competition prepared on the bases of the Project expert recommendations were initiated in the Parliament of Georgia; The Project continued to support enhancement of the legal framework through workshops and visits of highly qualified experts to raise awareness on planned amendments among different stakeholders.
CAPACITY BUILDING
• The Competition Agency of Georgia took part to over 35 tailor-made trainings on competition enforcement issues;
• With the Project support in different periods, 10 employees of the Georgian Competition Agency participated in various internship programs hosted by leading international organizations and European competition authorities;
• A tailored English language course was elaborated for the GCA staff.
INTERNATIONAL COOPERATION
• The Project supported strengthening of international standing of the Georgian Competition authority and the deepening of international cooperation;
• The Project organized visits of high rank officials from different competition authorities and international organizations, who held meetings with Georgian Government and Parliament representatives;
• As part of the Project activity, the representatives of the Georgian Competition Agency participated in the most important international events in the field of competition as well as in bilateral meetings with representatives of international organizations like OECD and UNCTAD as well as DG Competition;
• Two study visits to Brussels, at EU commission were implemented in the Project framework, during the second visit, Georgian delegation visited not only DG Competition but also the European Court of Justice and held meeting in DG NEAR. The Project also organized a visit to the Austrian Federal Competition Authority, meetings were held at the Competition Authority, Federal Ministry of Digital and Economic Affairs, Internet Ombudsman’s Office, as well as with experts of the Consumer Advocacy Group in Austria and representatives of leading legal company Cerha Hempel Spiegelfeld Hlawat. Another study visit was hosted by the by the Office of Competition and Consumer Protection of Poland, during the study visit the Georgian delegation familiarized itself with the peculiarities of competition and consumer protection law enforcement in the country.
• The Project supported organization of the second international conference “Competition Policy: Trends and Challenges“ held in Tbilisi and attended by up to 30 high rank officials from competition authorities and international organizations.
COOPERATION WITH SECTOR REGULATORS AND OTHER INSTITUTIONS
• The Project supported enhancement of cooperation between the agency, sector regulators and other institutions;
• The Project facilitated institutional dialogue and signature of the memorandums of understanding between the agency and other structures including the sector regulators;
• The Project organized thematic seminars for sector regulators as well as meetings with highly qualified European experts.
COMPETITION CULTURE
• The Project organized more than 30 awareness raising thematic seminars, conferences and workshops, targeting both, private and public sector;
• The Project supported organization of the second international conference “Competition Policy: Trends and Challenges“ held in Tbilisi and attended by up to 30 high rank officials from competition authorities and international organizations;
• For two years the Project supported organization of the workshop dedicated to World Competition Day;
• The Project conducted cycle of trainings for lawyers, judges and their assistants. In the framework of the training cycle, Judges from the European Court of Justice were invited to deliver seminars. The Project assisted elaboration and publication of different guidelines on competition issues and spread of information on competition law and policy among target audiences and wider public.
The overall impact of the Project will contribute to a more favourable business climate suitable to stimulate trade, to attract foreign investments, and to strengthen competitive forces in the market, therefore fostering the economic development of Georgia in line with DCFTA provisions and EU best practices.
In 2017, EBRD funded project, “Capacity Building and Advocacy Support for the Georgian Competition Agency,” was implemented. In the frames of the project, the activities were organized by the American company – “IOS Parnters, Inc“.
In the frames of the project, the following activities were implemented:
Two-day seminar for journalists – Held on June 29-30, 2017. The event, attended by up to 30 economics journalists from major broadcast channels and news websites, was held in Kachreti, Kakheti. With the Agency representatives and invited experts, the journalists had an opportunity to obtain complete information and responses on any issue interesting for media and get familiar with the principles of Competition Legislation. The goal of the event was to inform the media on Competition tasks, increase their awareness, and establish contacts with them.
Seminar on Leniency Program – Held on September 22, 2017, the event was attended by 40 representatives of the companies operating in Georgia. They had an opportunity to obtain information from Georgian and foreign experts (French and Czech) on benefits of Leniency Program and best international practices of its functioning in different countries.
The First International Scholarly and Practical Conference – “Competition Policy – Contemporary Trends and Challenges,” held on November 17-18, 2017, was dedicated to 25th anniversary of establishment and practical realization of Competition Policy in Georgia.
In the frames of The Conference, on November 17, the Chairman of Competition Agency of Georgia, Nodar Khaduri, signed Memorandums of Understanding with 6 countries’ – Belarus, Estonia, Latvia, Moldova, Czech Republic, and Romania – heads of Competition Authorities.
The conference was attended by the representatives of over 20 friendly countries (Austria, Belarus, Turkey, Estonia, Latvia, Lithuania, Poland, Moldova, Czech Republic, Romania, Ukraine, and etc.) and up to 200 participants, including representatives from local and international organizations, competition authorities of various countries, the Government of Georgia, Parliament, Supreme Court, Academics, and non-governmental organizations.
The Chairman of Competition Agency of Georgia, Nodar Khaduri, Rector of Ivane Javakhishvili Tbilisi State University, Giorgi Sharvashidze, The first Vice Prime Minister and Minister of Economy and Sustainable Development of Georgia, Dimitri Kumsishvili, Minister of Education and Science of Georgia, Mikheil Chkhenkeli, the Chairperson of the Supreme Court of Georgia, Nino Gvenetadze, the Operational Manager of the European Bank for Reconstruction and Development, Lorenzo Ciari, European Project “Support to the Georgian Competition Agency,” and the Director of B&S Europe, Rafael Comenge delivered speeches at the conference.
The researches on competition legislation and policy were presented and discussed during the plenary session and four working sections. The competition related key trends currently existing in Georgia – gaps in legislation, overcoming tools of these gaps, and future legislative initiatives – were emphasized during these sessions.
The second day of the conference was organized in Kakheti, where the speech on the importance of fair competition and effective enforcement policy was made by William Kovacic, a professor of Global Competition Law and Policy at George Washington University and the ex-Commissioner of the United States Federal Trade Commission.
The conference was organized in collaboration with Ivane Javakhishvili Tbilisi State University and Competition Institute.
Project “Development and Advocacy of Competition Agency of Georgia” was implemented with the support of the European Bank for Reconstruction and Development (EBRD) and funded by the Embassy of the United Kingdom of Great Britain and Northern Ireland (Implementer – U.S. Company IOS Partners, Inc. and its partner Dicidendi Consultants).
Project implementation commenced from July 2016 and ended with the Conference, held on February 2, 2017. The following activities were organized in the framework of the project:
Trainings
I Training - On September 21-29, a seven-day training course on Competition Law and Economics was conducted by the European experts (Yannis Katsoulacos and Ioannis Kokkoris) with the participation of the Agency staff and sector regulators;
II Training - On October 19-20, former Judge on the French Supreme Court, Chairman of the OECD Competition Committee - Professor Frederic Jenny conducted a two-day training;
III Training - On December 8, a training on quantitative analysis in the competition policy was conducted by the European expert (Marc Ivaldi).
Advocacy Seminars
I Seminar – On October 20, a conference on Competition Law Principles and Assessment of the Evidence when dealing with the Cartel Cases, was organized for the Judges on Tbilisi City Court and Tbilisi Court of Appeals, with the participation of the former Judge on the French Supreme Court - Professor Frederic Jenny;
II Seminar – On December 9, a conference on Institutional Set-up of Competition Authorities and Competition Advocacy was organized with the participation of international and national experts;
III Seminar – On February 2, a conference was organized with the participation of international and national experts. Conference topics were: pros of competition; effective institutional framework and violation of competition legislation in procurement.
Summer School on Rhode Island
From June 25 till July 7, four economists from the Competition Agency participated in a two-week summer school and international conference on Competition and Regulation.
Study Visit in the Czech Republic
On November 7-27, three employees of the Competition Agency of Georgia participated in a three-week study visit to the Competition Authority of the Czech Republic. In addition, they attended an annual international conference: “Trends in Competition Law”.
With the support of USAID Georgia HICD Activity, the Georgian National Competition Agency has launched a program for the development of the human resources management system and the establishment of policy management.
In the frame of the project: Examining the organization's mandate, strategy, human resource management and operational constraints; In accordance with existing legislation, get familiar with HRM policies, procedural manuals and supporting documents; Developing job descriptions for existing positions.
Coaching of relevant employees and piloting the implementation of the newly developed HRM system; Establishment of processes for review, initiation and monitoring of policy/legislative changes; Development of policy cycle management guidelines.
The EU-funded TWINNING project - “Strengthening Capacity of the Competition Agency of Georgia“ has started on June 1, 2022. Within the framework of the project, consultations and technical support will be provided by a team of professionals from the competition agencies of Lithuania and Austria.
The project aims to strengthen the competition and consumer protection policy within the framework of the EU-Georgia association agreement, improve the legal status of consumers in Georgia, ensure a high level of protection, and strengthen the culture of behavior based on respect. Also, enforcing the institutional and human resource capacity of GNCA in line with EU best practices.
Within 2 years, workshops, seminars, round tables and trainings for the agency’s staff and various target audiences are planned under the project. Together with the National Competition Agency, Business associations, civil society organizations, academy communities, non-governmental organizations, and media representatives will be actively involved in the implementation process of the project.
Following the established plan, a team of local and international experts jointly will work on processing the by-law document and drafting various guidance materials.
