- Chapter 1. General Provisions
- Article 1. Objectives
- Article 2. Scope
- Article 3. Antimonopoly Legislation
- Article 4. Principal Definitions
- Article 5. The Antimonopoly Body
- Article 6. The Assignments of the Antimonopoly Body
- Article 7. Functions of the Antimonopoly Body
- Article 8. The Activities of the Antimonopoly Body
- Article 9. The Authorities of the Antimonopoly Body
- Article 10. The Right of the Antimonopoly Body to Access to Information
- Article 11. Councils of Experts Attached to the Antimonopoly Body1.
- Chapter 2. Monopoly Activities and Protection of Competition
- Article 12. Obligations of the State Bodies with respect to the Protection of Competition
- Article 13. Acts and Actions of the State Bodies Aimed at the Restriction of Competition
- Article 14. Agreements (Agreed Actions) of Market Entities Restricting Competition
- Article 15. Agreements (Agreed Actions) of the State Bodies Those Which Restrict Competition
- Article 16. The Dominant (Monopolistic) Position of a Market Entity
- Chapter 3. Certain Types of State SupervisionArticle
- Article 17. State Supervision of the Creation, Re-organisation, Liquidation of Market Entities and Their Associations
- Article 18. State Supervision of Compliance with Antimonopoly Legislation in Cases of Acquisition of Shares (Portions, Stakes) in the Authorised Capital of Market Entities and in Other Cases
- Article 19. Compulsory Division, Segregation of Market Entities Holding the Dominant (Monopolistic) Position at a Certain Commodity Market
- Article 20. Introduction of the State Regulation of Prices
- Chapter 4. Responsibility for Violation of Antimonopoly Legislation
- Article 21. Obligatory Nature of the Execution of Prescriptions and Decisions of the Antimonopoly Body
- Article 22. Responsibility for Violation of Antimonopoly Legislation
- Article 23. Responsibility of Market Entities
- Article 24. Responsibility of the Heads of Market Entities, Official Persons of State Bodies
- Chapter 5. The Procedure for Adoption, Appeal, and Execution of the Prescriptions and Decisions of the Antimonopoly Body
- Article 25. Grounds for Considering Cases of Violation of Antimonopoly Legislation by Antimonopoly Bodies
- Article 26. The Procedure for the Execution of the Prescriptions and Decisions of the Antimonopoly Body
- Article 27. The Procedure for Appeal against the Prescriptions and Decisions of the Antimonopoly Body
[ZK010144.DOC]* LAW No. 144 OF 19th JANUARY 2001 OF THE REPUBLIC OF KAZAKHSTAN
CONCERNING COMPETITION AND RESTRICTION OF MONOPOLY ACTIVITIES
Chapter 1. General Provisions
Article 1. Objectives
1. The development of free competition, entrepreneurship, protection of the interests of consumers, and assurance of conditions for the efficient functioning of commodity markets shall be recognised as the objectives of this Law.
2. The Law shall define the institutional and legal measures of state-directed regulation those associated with support to entrepreneurship, the prevention, restriction, suppression, and regulation of monopoly activities.
Article 2. Scope
1. This Law shall have an effect in the territory of the Republic of Kazakhstan and it shall be applicable to the relations affecting competition at the commodity markets of the Republic wherein Kazakhstani and foreign legal entities (their affiliates and representations), individual entrepreneurs, central and local executive bodies (henceforth - state bodies), and physical persons take part.
2. This Law shall not apply to the relations associated with the objects of exclusive rights, except for the cases where the agreements connected with the use of such rights are aimed at the restriction of competition.
Article 3. Antimonopoly Legislation
1. Antimonopoly legislation shall be based on the Constitution of the Republic of Kazakhstan and it shall consist of the rules of the Civil Code of the Republic of Kazakhstan, this Law, and other regulatory legal acts of the Republic of Kazakhstan those which contain the provisions concerning the prevention, restriction, and suppression of monopoly activities, unfair competition, and concerning the regulation of the activities of subjects of natural monopoly.
2. In cases where an international treaty ratified by the Republic of Kazakhstan establishes rules other than those contained in this Law, then the rules of such international treaty shall apply.
Article 4. Principal Definitions
The following principal definitions shall be used in this Law:
1) substitute goods shall mean a group of goods those which may be comparable in their functional designation, application, qualitative and technical characteristics, and other parameters in such a manner that a buyer in fact replaces or is ready to replace such goods one for another in the process of consumption;
2) the State Register of Market Entities Holding a Dominant (Monopolistic) Position at a Certain Commodity Market shall mean a nominal list of market entities those which carry out entrepreneurial activities in a competitive sphere, those whose share in a relevant commodity market exceeds a maximum amount to be established annually by the antimonopoly body;
3) state regulation of prices shall mean the regulation of prices to be carried out pursuant to a decision of the antimonopoly body, for goods (work, services) of market entities those which hold the dominant (monopolistic) position at a relevant commodity market;
4) competition shall mean the competitiveness of market entities when the independent actions of such entities efficiently restrict the possibility of each of them to unilaterally affect general conditions of circulation of goods (work, services) at a relevant commodity market and when such actions stimulate the production of goods (work, services) necessary for consumers.
5) monopoly activities shall mean actions (inaction), those which contradict this Law, of market entities, state bodies, those which are aimed at the non-admission, restriction, or elimination of competition, and (or) those which infringe the legitimate interests of consumers;
6) exclusively high price shall mean a price to be established by market entities those which hold the dominant (monopolistic) position at a relevant commodity market in order to compensate unreasonable costs and (or) to gain additional revenue owing to the abuse of such dominant (monopolistic) position;
7) exclusively low price shall mean a price for goods to be established by market entities deliberately, by those which hold the dominant (monopolistic) position at a relevant commodity market, that is established for the purposes to restrict competition by way of removal of competitors from the commodity market;
8) monopolistic income shall mean income gained by any market entity through monopoly activities;
9) a maximum share value of the market entity at a relevant commodity market shall mean an index that is the basis for the inclusion into the State Register of Market Entities Holding the Dominant (Monopolistic) Position;
10) a collusion shall mean actions agreed between market entities, those which are aimed at establishing a single price for goods (work, services) or at sharing the commodity market, those which lead and (or) may lead to negative consequences at the commodity market;
11) market entities shall mean physical persons, legal entities, their affiliates and representations, those which carry out activities associated with the manufacture, sale, purchase of goods (work, services);
12) goods (work, services) shall mean the product of activities (including work, services) intended for sale or barter;
13) commodity market shall mean a sphere of circulation of goods, those which have no substitutes or of mutually replaceable goods (work, services), to be determined on the basis of the economic possibility and also territorial and technological possibility of buyers to purchase such goods (work, services).
Article 5. The Antimonopoly Body
1. The implementation of the national policy for the development of commodity markets and competition, the prevention, restriction, and suppression of monopoly activities, protection of the rights of consumers, supervision of compliance with antimonopoly legislation, regulation of prices, as well as coordination of the activities of other state bodies in this sphere shall be carried out by the authorised body for protection of competition and restriction of monopoly activities that is the antimonopoly body of the Republic of Kazakhstan.
The principal assignments, functions, powers, and responsibility of the antimonopoly body of the Republic of Kazakhstan shall be defined by this Law and other legislative acts of the Republic of Kazakhstan.
The single system of the antimonopoly body shall be composed of the central executive body in the sphere of antimonopoly policy and the territorial units subordinated to said body (henceforth - antimonopoly body). Such territorial units shall carry out their activities within the boundaries of the authority as established by the central executive body in the sphere of antimonopoly policy.
2. The Regulations concerning the Central Executive Body in the Sphere of Antimonopoly Policy and the authority of said body shall be approved by the Government of the Republic of Kazakhstan.
Article 6. The Assignments of the Antimonopoly Body
The following shall be recognised as the assignments of the antimonopoly body:
1) support to entrepreneurship, the development of competition at the market of goods (work, services);
2) taking measures for the prevention, restriction, and suppression of monopoly activities, abuse of the dominant (monopolistic) position at the commodity market, suppression of unfair competition;
3) regulation of the activities of the subjects of natural monopoly;
4) regulation and supervision of the procedure for rendering services by state bodies;
5) supervision of compliance with antimonopoly legislation and price formation procedure;
6) control of the dominant (monopolistic) position of market entities at commodity markets;
7) coordination of the activities of state bodies for protection of the interests of consumers.
Article 7. Functions of the Antimonopoly Body
The antimonopoly body, in accordance with the assignments entrusted to it, shall within the boundaries of its authority, perform the functions as follows:
1) to carry out the analysis for the purposes to identify market entities those which hold the dominant (monopolistic) position, restrict competition, and carry out monopoly activities at the commodity market;
2) to carry out expert evaluation of draft laws and other regulatory legal acts concerning functioning of the commodity market, development of competition, issues of price formation, and protection of the interests of consumers;
3) to submit to the President of the Republic of Kazakhstan and to the Parliament and Government of the Republic of Kazakhstan reports concerning commodity market situation, competition at such market, and proposals concerning the improvement of antimonopoly legislation and the practice of its application;
4) to consider within the boundaries of its authority cases concerning violation of antimonopoly legislation and to adopt decisions with regard to such cases;
5) to carry out state-directed supervision of compliance of market entities with antimonopoly legislation;
6) to elaborate and approve regulatory legal acts obligatory for execution by market entities.
Article 8. The Activities of the Antimonopoly Body
1. For the purposes to maintain and develop competition, the antimonopoly body shall:
1) study commodity market situation, the level of competition at such market, and elaborate on this basis measures for support to entrepreneurship, and also for the prevention, restriction, suppression and regulation of monopoly activities;
2) issue recommendations to state bodies those concerning the implementation of measures aimed at the development of the commodity market and competition at such market;
3) work out measures for the creation of parallel structures, as well as the division of legal entities (their affiliates and representations) those which hold the dominant (monopolistic) position at the commodity market.
2. The antimonopoly body shall submit to the relevant state bodies the proposals which shall be obligatory for consideration concerning the following:
1) improvement of price policy in the areas where sufficient competition is not available, as well as in those which require priority development, in particular the proposals concerning establishing, in accordance with the procedure established by the legislation of the Republic of Kazakhstan, of fixed state prices (tariffs) for goods (work, services) in order not to admit exclusively high prices;
2) attraction of investors and creation of joint ventures, the alteration of licensing procedures for export-import transactions and the adjustment of customs duties, in particular the proposals concerning the introduction of obligatory licensing, and the prohibition or suspension of export-import transactions of market entities in cases where such entities violate antimonopoly legislation.
Article 9. The Authorities of the Antimonopoly Body
The antimonopoly body, within the boundaries of its authority and in accordance with this Law, shall have the following rights:
1) to elaborate and approve regulatory legal acts concerning issues of antimonopoly legislation, those which are mandatory for state bodies and market entities;
2) to ascertain the availability of the dominant (monopolistic) position of market entities;
3) to issue statements concerning the creation of market entities if this leads to the appearance of business entities, those whose share at a relevant commodity market will exceed thirty five per cent, as well as concerning re-organisation, liquidation of market entities, those which hold the dominant (monopolistic) position at a relevant commodity market;
4) to perform reviews of issues of compliance with antimonopoly legislation by state bodies, market entities;
5) to issue mandatory instructions to state bodies and their official persons, to market entities those whose share at a relevant commodity market will exceed thirty five per cent, or to those which hold the dominant (monopolistic) position at a relevant commodity market, and also to the heads of such entities;
6) to adopt decisions concerning the imposition of fines on market entities and their heads, as well as on the official persons of the state bodies those which obstruct the development of competition, the execution of the instructions of the antimonopoly body, as well as for other violations as provided for by this Law and other legislative acts;
7) to appeal to the court with lawsuits for the purposes to eliminate the violations of antimonopoly legislation, and also legislation concerning protection of the interests of consumers;
8) to address and to submit to the relevant law enforcement bodies materials for the solution of issues concerning the institution of criminal cases bearing the signs of crimes associated with violation of antimonopoly legislation;
9) to provide explanations on issues of antimonopoly legislation;
10) to submit to state bodies proposals concerning the abolition or amendment of acts adopted by such bodies, those which violate antimonopoly legislation;
11) to direct to the bodies of the Procurator Office the materials and regulatory legal acts those which contradict legislation;
12) to hear at the sessions of the antimonopoly body the reports of the official persons of state bodies, market entities those whose share at a relevant commodity market will exceed thirty five per cent, or those which hold the dominant (monopolistic) position at a relevant commodity market concerning issues included into the authority of the antimonopoly body;
13) to exercise other powers as provided for by the legislation of the Republic of Kazakhstan.
Article 10. The Right of the Antimonopoly Body to Access to Information
1. The workers of the antimonopoly body, within the boundaries of their authority, and for the purposes to perform the functions entrusted to them shall have the right to access to state bodies and other market entities.
2. To receive from the official persons of state bodies, market entities and their heads, and also physical persons necessary information, documents or their copies, written (verbal) explanations on the occasion of the committed violations of antimonopoly legislation.
3. Market entities, those whose share at a relevant commodity market will exceed thirty five per cent, or those which hold the dominant (monopolistic) position at a relevant commodity market, their heads, state bodies and their official persons shall be obliged pursuant to the demand of the antimonopoly body to present reliable documents, written and verbal explanations, and any other information required for the antimonopoly body for the performance of its activity.
4. Information constituting a commercial secret as received in the course of the exercise of the rights as established by this Law, shall not be subject to disclosure.
The workers of the antimonopoly body, for the disclosure of information constituting a commercial secret shall bear responsibility in accordance with the procedure as provided for by the legislative acts of the Republic of Kazakhstan.
Article 11. Councils of Experts Attached to the Antimonopoly Body
1. Councils of Experts to be formed from amongst scientists and specialists, the representatives of the state bodies and market entities shall be created and function at the antimonopoly body.
2. Councils of Experts shall carry out their activities in accordance with the Regulations to be approved in accordance with the established procedure.
Chapter 2. Monopoly Activities and Protection of Competition
Article 12. Obligations of the State Bodies with respect to the Protection of Competition
The state bodies shall be obliged as follows:
1) to assist the development of commodity markets and competition;
2) to carry out purpose-oriented investing to those market entities which develop competitive activities in the sectors wherein certain commodity producers hold a monopolistic position;
3) to stimulate the activities of concurrent production lines at monopolised sectors;
4) to carry out re-organisation of market entities, those which are under the jurisdiction of such bodies and those which hold the dominant (monopolistic) position at a relevant commodity market;
5) to promote the creation of new enterprises in order to expand competition at the commodity market.
Article 13. Acts and Actions of the State Bodies Aimed at the Restriction of Competition