The Competition Law Passed the First Reading. What the Housing Committee Deputies Argued About

Ирина Орлонская Politics
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The first reading of the new bill "On Competition" took place in the Jogorku Kenesh. This update aims to revise the norms established in 2011, which, according to the antimonopoly service, have become outdated and do not reflect the modern realities associated with digitalization and the emergence of new business models.

One of the key changes proposed in the new version of the law is the abandonment of the state register of dominant companies. Instead, the status of monopolists will be determined through a real market analysis, which will allow for a more flexible response to violations. Additionally, the bill increases the statute of limitations for violations from one year to six, and introduces oversight of digital platforms and marketplaces.

During the discussion of the new provisions, disagreements arose between deputies and representatives of the Antimonopoly Service, particularly regarding the impact on exclusive contracts. Deputy Zhyldyz Sadybayeva raised a question about the methods that will be applied to such agreements.

Chairman of the service Aibek Mamyraliev cited the situation in restaurants and cafes in Kyrgyzstan, which often offer only imported beverages due to exclusive contracts with large suppliers. He noted that if such contracts restrict competition, the agency will be able to annul their terms.

However, Deputy Sadybayeva called this approach illogical, emphasizing that restrictions at individual points cannot affect the entire market. "This only concerns a specific point, and such restrictions cannot influence the overall situation in the market. Unfortunately, the economy of Kyrgyzstan depends on imports in various sectors, and many imported goods are cheaper and of better quality than domestic ones. What actions will be taken if the price of imported goods is lower than that of similar local products?" she asked.
In response, Mamyraliev stated that the law is aimed at creating a competitive environment and balancing interests, while the protection of local producers is the prerogative of the Ministry of Economy. The Antimonopoly Service will ensure equal conditions for all market participants.
Deputy Elvira Surabaldiyeva raised the issue of possible abuses by large companies. She clarified what measures would be taken if a dominant company begins to unjustifiably raise prices.

Mamyraliev reported that the new law provides for a multi-tiered mechanism of accountability based on business proposals: first, a warning is issued, then an official notice follows, and only after that is accountability applied in accordance with the Code of Offenses.
If a company admits its guilt, mechanisms for mitigating punishment are provided.
Currently, there are 102 legal entities registered in Kyrgyzstan as natural monopolists and 100 dominant companies.
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