Antitrust Practices: Clearances, Unfair Competition, and Enforcement in Kyrgyzstan

1) What types of unfair competition are prohibited in your jurisdiction?

In Kyrgyzstan, unfair competition practices such as discrediting competitors, violating good faith in business activities, abusing a dominant position, entering into anti-competitive agreements, creating discriminatory conditions, and setting monopolistically high or low prices are prohibited. Misleading consumers and bribing buyers are not specifically mentioned, but may be covered as general unfair practices.

2) What types of bid rigging exist, and how are they classified?

Anti-competitive collusion is prohibited in Kyrgyzstan: horizontal (between competitors – price fixing, market sharing, coordination of volumes) and vertical (between seller and buyer – imposing conditions, restricting the circle of buyers). Such agreements are considered invalid, and violators are liable under the Code of Offences.

3) How do antitrust authorities detect and investigate cartels and anti-competitive agreements?

In Kyrgyzstan, the antitrust authority identifies cartels and anti-competitive agreements by analysing behaviour in commodity markets and studying documentation, statements and reports from market participants and the media. Investigations involve economic analysis, monitoring of prices and market shares, and verification of concerted actions between economic entities. Official investigations and unscheduled inspections are conducted to gather direct and indirect evidence. Based on the results of the investigation, a decision is made on the existence of a violation and measures are taken, including warnings and sanctions.

4) What measures can companies take to mitigate antitrust risks?

In Kyrgyzstan, to reduce antitrust risks, companies are advised to conduct internal analysis of the competitive environment, ensure economic justification for their actions, avoid overpricing or artificial underpricing, and carefully coordinate transactions and agreements, taking into account their possible impact on competition. It is important to coordinate significant decisions and actions with the antitrust authority in a timely manner, as well as to keep detailed records and monitor market conditions. A draft law amending the Kyrgyz Republic's Competition Law is currently being developed, proposing the introduction of antitrust compliance, which will enable systematic risk minimisation and the development of self-regulation in business in the future.

5) What are the specific rules governing undertakings with a dominant market position?

In Kyrgyzstan, entities occupying a dominant position in the market are subject to special control and restrictions. Abuse of a dominant position is prohibited, including, inter alia, creating barriers to market access for other economic entities, setting monopolistically high or low prices, imposing discriminatory conditions, and unjustified refusals to conclude contracts. The antimonopoly authority maintains a state register of such entities and exercises constant economic and statistical monitoring and control over their activities. In the event of systematic violations, the economic entity may be forcibly divided (split up) in order to restore competition.

6) What powers do antitrust authorities have when conducting inspections?

In Kyrgyzstan, antitrust authority have the right to conduct inspections of economic entities, request documents and information, and carry out on-site inspections to identify violations of antitrust legislation. Antitrust authority also can issue mandatory orders, impose fines, and initiate administrative proceedings when unfair competition or collusion is detected.

Author: Tilek Obolbekov, Associate.