interpressnews.ge: Irakli Lekvinadze - with the amendments to the competition law, Georgia has more comprehensive legislation in accordance with DCFTA requirements
Following one of the requirements of the Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union, a draft amendment to the Law of Georgia on Competition has prepared with the involvement of local and international experts, and the Parliament of Georgia has adopted by the third hearing.
„One of the main challenges for the agency was more effective legislation. In the process of evaluating the notification on concentration and conducting market monitoring, undertakings did not have an obligation to provide the Agency with the requested information, which does not allow conducting a full study of the market, but now, following the amendments - undertakings will have an obligation to provide the Agency with the relevant information to conduct the evaluation process of the concentrations and monitoring.
Short investigation deadlines- instead of 10 moths it will be 18 months, as the study of abuse of a dominant position and anti-competitive agreements requires extensive market analysis and economic research. In order to regulate the mechanisms for responding to concentrations implemented without the permission of the Agency, to control the concentrations which are not compatible with the Law on Competition to protect the competitive environment in the market the sanctions are imposed on violating the rules of concentration and on the facts of unfair competition.
As for the policy of competition law enforcement in other regulated sectors - competition regulatory norms will be comprehensive. Activities of the entrepreneurs of the regulatory sectors will be regulated by the Law on Competition, which will increase competition in these markets and will have a positive impact on consumers.
Also, according to the adopted legislative amendments, the mechanisms of on-site inspection of undertakings will be improved - which is an EU standard approach, unexpected on-site inspection is the main mechanism for the investigation of cartels. Nowhere entrepreneurs are informed in advance about the expected inspection.
The proposed amendments are based on European best practices, they are discussed based on recommendations from both, international and local experts, responds to the challenges facing the Agency today and dedicates to eliminate several practical and legal gaps, improve the effectiveness of competition policy enforcement. “, - Irakli Lekvinadze, Chairman of the Competition Agency of Georgia.
Based on the best practices of the EU countries, according to the draft amendment to the Law of Georgia on Competition, the deadlines for case investigation, notification of concentration, and evaluation for state aid will be increased. Following the established practice in the developed countries of the world, the management structure changes, and the agency forms as a collegial governing body.
The Norms of the Council will come into force on June 1, 2021, and the rest of them on the 45th day after its publication.
Competition Agency completed 2 investigations in 2020, in one of which revealed abuse of a dominant position, the undertaking was sanctioned, and the other confirmed unfair competition.
At this time, 4 investigations processes are underway in the Agency. During the same period, the Agency has completed 5 market monitoring and 3 ongoing. One consent was issued for the concentration of undertakings.
